3D-printed parts are also lighter and more robust than normal machine components, making them ideal for use in airplanes, for instance. It also bought Swedish company Arcam, which specializes in metal-based 3D printing, selling mainly to the aerospace and healthcare industries, for a total of $685 million.
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“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”, GE Chief Executive Jeff Immelt said in the release.
GE expects to be earning up to $1 billion a year from its 3D printing arm by 2020.
GE had already pumped more than $1.5 billion into additive manufacturing before these latest takeovers were announced and held more than 340 patents for metal powders. Arcam, with approximately 285 employees, generated $68 million in revenues in 2015 from its customers in the aerospace and healthcare industries. Each of them made nearly $70 million in revenue a year ago, and they boost nearly 300 employees.
“We chose these two companies for a reason”, said David Joyce, chief executive of GE Aviation. “Over time we plan to exend the line of additive manufacturing equipment and products”.
The value of Arcam’s shares rose to 53.2 percent on the Stockholm exchange after the news on Tuesday.
Both acquisitions are structured as public tender offers for all outstanding shares of stock.
The new acquisitions will add pressure on rivals Rolls-Royse Holdings and United Technologies’ Pratt & Whitney Unit as well, which manufactures aircraft components.
The further development of SLM Solutions into a supplier of solutions for additive manufacturing is an important strategic step for GE Aviation on its path to becoming a digital industrial company. Arcam’s board backs the bid, according to a statement. Together, we will continue to develop our technology at our site in Lübeck and position our company on an even broader basis as part of a large, internationally successful group.
With GE’s global product and service distribution footprint, SLM’s existing customer footprint is expected to expand significantly.
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Ark’s Tasha Keeney said, “we expect to see more industrial firms copy GE’s lead and adopt in order to keep costs low and create parts better suited for their end use”.
