GE to Acquire Additive Manufacturing Companies Arcam and SLM
GE plans to acquire Arcam and SLM Solutions, suppliers of additive manufacturing equipment, for US $1.4BB in cash.
Of the $1.4BB, SEK 5.8BB (~US $690.0MM) pertains to the acquisition of Arcam. Arcam generated $68.0MM in revenues in 2015, while SLM generated $74.0MM. These figures include non-healthcare-related revenue. GE, which has invested ~$1.5BB in manufacturing and additive technologies since 2010, expects to grow its new additive business to $1.0BB by 2020.
Arcam, based in Sweden, invented the electron beam melting machine for metal-based additive manufacturing and produces advanced metal powders, serving the healthcare and aerospae industries. Arcam operates AP&C, a metal powders operation in Canada, and DiSanto Technology, a medical additive manufacturing firm in the U.S.
SLM Solutions, based in Germany, produces laser machines for metal-based additive manufacturing with customers in the healthcare, aerospace, energy and automotive industries.
Both acquired entities will report to the head of GE's Aviation branch, and the additive effort will be centered in Europe. GE will maintain headquarters locations and key operating locations of Arcam and SLM, and will retain their management teams and employees. These locations will collaborate GE's manufacturing and materials research center in New York and the additive design and production lab in Pennsylvania. They will also complement technologies brought on by other GE acquisitions, such as Morris Technologies and Rapid Quality Manufacturing.
Sources: GE press release and presentation slides; Arcam AB; ORTHOWORLD Inc.