BOSTON--GE (NYSE: GE) has agreed to purchase controlling shares of Arcam AB of Sweden following the conclusion of the extended public tender offer which ended on November 10.
Arcam shares tendered during the extended acceptance period – combined with Arcam shares acquired by GE – correspond to approximately 73.57% of the total outstanding shares for GE.
In addition, GE filed to further extend the acceptance period for the tender offer to November 29 to allow remaining shareholders to accept the offer.
Based in Mölndal, Sweden, Arcam AB is the inventor of electron beam melting machines for metal-based additive manufacturing, and a producer of advanced metal powders with customers in the aerospace and orthopedic industries. Arcam generated $80 million in revenues in 2015 with about 320 employees. Arcam also operates AP&C, a metal powders operation in Canada, and DiSanto Technology, a medical additive manufacturing firm in Connecticut in the U.S.A., as well as sales and application sites worldwide.
GE’s controlling ownership of Arcam stock will enable GE to influence the company and its future direction. GE will invest significantly in Arcam’s products and technology and will ultimately influence the makeup of the Arcam board of directors.
“GE’s strong position as a controlling shareholder of Arcam is a key step in our overall additive strategy,” said David Joyce, GE vice chairman and president and CEO of GE Aviation. “We are delighted with our relationship with Arcam, which follows our recent announcement with Concept Laser. GE is becoming a key player in the additive space.”
On October 27, GE had reached an agreement to acquire a 75% stake in Concept Laser GmbH for $599 million (€549 million). The agreement allows for GE to take full ownership over the next several years. Privately-held Concept Laser has more than 200 employees and is headquartered in Lichtenfels, Germany, with significant operations in the United States (Grapevine, Texas), China, and a global network of more than 35 distributors and agents. Concept Laser is a pioneer in the field of metal additive manufacturing.
Concept Laser designs and manufacturers powder bed-based laser additive manufacturing machines. Its customer base is focused on the aerospace, medical and dental industries, with a meaningful presence in automotive and jewelry. Concept Laser’s machine range incorporates both the largest and smallest build envelopes currently available on the market and are capable of processing various powder materials including titanium, nickel-base, cobalt-chromium and precious metal alloys, as well as hot-work and high-grade steels and aluminum.
GE is well positioned to advance the additive manufacturing revolution across several industries. As a leading end user and investor in additive technology for several years, GE is experiencing its transformative engineering and manufacturing power across the company’s industrial businesses.
GE has also invested approximately $1.5 billion in manufacturing and additive technologies at GE’s Global Research Center (GRC) in Niskayuna, New York, in addition to building a global additive network of centers focused on advancing the science.
Now, the Arcam and Concept Laser transactions allow GE to focus on becoming a leading supplier of additive machines, materials, and software for several industry segments, including aerospace, power generation, automotive, medical, and electronics.
About GE Additive
GE Additive is part of GE (NYSE: GE), the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect.
Visit GE Additive at www.geadditive.com for detailed information on its vision, technologies, acquisitions, manufacturing and engineering activities.
GE Additive is led by David Joyce, GE Vice Chairman and CEO of GE Aviation, an operating unit of GE and a world-leading provider of jet engines, components and integrated systems for commercial and military aircraft. For more information, visit us at www.geaviation.com.