Generation Growth Capital Inc. (GGC), a small-business private equity firm based in Milwakee has acquired 3rd Dimension Industrial 3D Printing, an Indiana-based metal 3D printing service bureau. 3rd Dimension was obtained through the Generation Growth Capital Fund III LP worth $75 million. Full terms of the deal remain undisclosed.
Bob Markley, Founder of 3rd Dimension, said “I am excited to be partnered with GGC for 3rd Dimension’s next phase of growth. During my search for the right partner, it became apparent that GGC was well aligned with my goals and could offer more than just access to capital after the transaction.”
Expanding 3rd Dimension
Founded in 2013, 3rd Dimension provides 3D printing services to clients in the aerospace, defense, and automotive industry. As such the company offers a variety of metal alloys such as the 316L and AlSi12 on 3D System’s ProX machines, including the DMP 320. In addition to metals, 3rd Dimension also uses Stratasys’ Fortus 250mc for 3D printing thermoplastics.
With the latest investment from Generation Growth, 3rd Dimension is looking to expand its customer base.
Markley adds “Their [GGC] team’s background in manufacturing provides significant strategic advantages. They speak the same language and understand the business model. I believe this partnership will greatly benefit 3rd Dimension’s customers as we expand and invest in new equipment and technologies.”
GGC investments in additive manufacturing
Generation Growth Capital invests its resources in manufacturing and distribution companies. The investment firm funded the Generation Growth Capital Fund III LP to raise funds in three phases. The first phase which ended in 2016, accumulated $29.3 million and the second phase closed at $48.2 million. Finally, the third phase concluded with $75 million in funding from 25 investors.
GGC invests in small-to-midsize businesses with a total value below $30 million and sales between $5 million and $50 million. Investments are structured as a private equity, meaning the shares of the acquisition are not publicly available, though investment typically ranges between $1 million and $10 million.
Previously, GGC has acquired 3D printing-related companies such as Innovative Laser Technologies, which develops laser systems for manufacturing operations such as welding, cutting and drilling. The company’s HMI-2200 laser control software is used in Directed Energy Deposition, an additive manufacturing process used to manufacture parts in the aerospace sector.
Its selection of acquisitions also includes:
– Clinkenbeard & Associates, Inc, a maker of metal castings
– Atlantic Precision, a specialist in metal 3D printing
– Tri Aerospace, a company offering rapid prototyping and machining services to aerospace clients
All three companies were added to M2M Machining, a prototyping and machining company, and now form the Model 2 Machine Group (M2M).
In relation to the 3rd Dimension acquisition John Reinke, Managing Director of Generation Growth Capital, commented, “We were extremely impressed by 3rd rd Dimension’s capabilities and customer base and look forward to working with Bob Markley to build a best-in-class additive manufacturing platform,”
“We have already begun our investments in new facilities and equipment to provide enhanced services to 3rd Dimension’s customers.”
Featured image shows a bed of metal 3D printed components. Photo via 3rd Dimension