GE (NYSE: GE), the world’s leading digital industrial company, today announced plans to acquire two suppliers of additive manufacturing equipment, Arcam AB and SLM Solutions Group AG for $1.4 billion. Both companies will report into David Joyce, President & CEO of GE Aviation. Joyce will lead the growth of these businesses in the additive manufacturing equipment and services industry. In addition, he will lead the integration effort and the GE Store initiative to drive additive manufacturing applications across GE.
“Additive manufacturing is a key part of GE’s evolution into a digital industrial company. We are creating a more productive world with our innovative world-class machines, materials and software. We are poised to not only benefit from this movement as a customer, but spearhead it as a leading supplier. Additive manufacturing will drive new levels of productivity for GE, our customers, including a wide array of additive manufacturing customers, and for the industrial world.” (Jeff Immelt, Chairman and CEO of GE.)
Based in Mölndal, Sweden, Arcam AB manufactures Electron Beam Melting systems for use in additive manufacturing, which create solid parts from metal powders. Apart from hardware production, Arcam also produces metal powder through AP&C and medical implants through DiSanto Technologies. Arcam generated $68 million in revenues in 2015 with approximately 285 employees.
GE is offering 285 Swedish crowns per share, or a total of 5.86 billion crowns ($685 million) for Arcam.
SLM Solutions Group
Based in Lübeck, Germany, SLM produces laser machines for metal-based additive manufacturing with customers in the aerospace, energy, healthcare, and automotive industries. SLM generated $74 million in revenues in 2015 with 260 employees. In addition to its operations in Germany, SLM has sales and application sites worldwide.
Already agreed to buy 31.5% of shares from major shareholders, GE is offering €38 per share, or a total of €683 million ($762 million) to SLM Solutions.
“Additive manufacturing fits GE’s business model to lead in technologies that leverage systems integration, material science, services and digital productivity. It will benefit from the GE Store and our core engineering capability.” (David Joyce, President & CEO of GE Aviation)
There is no doubt that Arcam and SLM will beef up GE’s existing material science and additive manufacturing capabilities. Ever since 2010, GE has invested $1.5 billion in manufacturing and additive technologies. GE said it expected its new 3D printing business to grow to $1 billion by 2020 at attractive returns.
Feature image: GE