Dec.13, 2013
Swedish industrial 3D printer maker Arcam has signed an agreement to acquire the metal powder division (AP&C) of Canada's Raymor Industries for a total of 35 million Canadian dollars ($32.91 million), in a move to secure access to high quality titanium powder for its growing business.
AP&C is a global manufacturer of high quality metal powders and has been a supplier of titanium powders to Arcam since 2006. AP&C uses proprietary Plasma Atomization technology to produce metal powders where titanium alloy powder today is the largest product. A significant part of AP&C sales is to the 3D-Printing industry.
Arcam provides additive manufacturing solution for production of metal components. The parts are built up, layer-by-layer of metal powder, melted by a powerful electron beam for example. Each layer is melted to the exact geometry defined by a CAD model. The company was founded in 1997 and is listed on NASDAQ OMX Stockholm, Sweden. It is also the best performing stock on the Stockholm stock exchange this year with a rise of close to 500 percent.
"With this acquisition Arcam secures access to the optimum production of high grade metal powders for our customers and we also add technology and expertise in powder metal production for 3D-printing in general and other advanced applications," says Magnus René, President and CEO of Arcam.
The acquired division, AP&C, with currently 29 employees, is expected to generate CAD 6.5 M of revenue during 2013 with an EBITDA result of about CAD 1.5 M.
The total purchase price amounts to CAD 35 million where a cash payment amounting to CAD 20 million will be paid on closing and the remaining part as two installments to be made in 2015 and 2016 subject to certain targets being met. Closing of the acquisition is expected to take place in the first quarter 2014.
Financing is secured through existing cash and a bank credit facility. Arcam also has the possibility to issue up to 400,000 new shares.
"Because of our long term close cooperation with Arcam we know that this deal will give us a very good platform for continued growth in the 3D-printing industry. Being part of a larger group will also help in accelerating growth to better service the overall metal powder market", says Jacques Mallette, President of Raymor Industries and future President of Arcam's powder business.
Arcam shares rose 7 percent after the announcement.
Posted in 3D Printing Company
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