GE makes $685 bid for Swedish 3D printer firm Arcam

GE said it would launch dual tender offers to buy Sweden’sArcam AB and Germany’sSLM Solutions Group AG, doubling down in its efforts to expand in 3-D technology. “It will benefit from the GE Store and our core engineering capability”.

In its statement, SLM said that GE intends to offer a cash consideration of 38 euros per SLM Solutions share. General Electric’s German business announced plans today for a takeover offer for Germany’s SLM Solutions and has already signed deals to buy nearly a third of shares from existing shareholders.

Arcam posted $68m in revenues in 2015 and boasts a workforce of 285 employees. 3-D printing, or additive manufacturing, that “will drive new levels of productivity for GE including a wide array of additive manufacturing customers, and for the industrial world”, GE’s Chairman and Chief Executive Jeff Immelt said.

Molndal, Sweden-based Arcam invented the electron beam melting machine for metal-based additive manufacturing and also produces advanced metal powders.

“We chose these two companies for a reason”, said David Joyce, head of GE Aviation, saying that each brought different, complementary additive technology modalities to GE.

GE, which laid the foundation for its 3D printing push with the acquisition of 3D printing specialists Morris Technologies in 2012, said it expected its new 3D printing business to grow to $1 billion by 2020 at attractive returns. GE will maintain the headquarters and management for each company. SLM investors are set to receive 38 euros a share in the agreed deal, a 37 per cent premium to its prior close.

3D printing technology involves taking digital designs from computer aided design software, and laying horizontal cross-sections to manufacture the part. Because additive parts are essentially “grown” from the ground up, they generate far less scrap material.

Based in Lubeck, Germany, SLM makes lasers for 3D printers, and generated $74m in revenue in 2015, employing 260 people.

Shares of General Electric closed last Friday at $31.29, up $0.09 or 0.29%.