Arcam Closes Strategic Acquisition of Metal Powder Manufacturer AP&C in Canada
MÖLNDAL, Sweden--(BUSINESS WIRE)--Regulatory News:
“AP&C’s technology and market position for high-end metal powder is perfectly complementary to Arcam’s EBM system business, and strengthens Arcam’s position in the Additive Manufacturing market”
Arcam AB (STO:ARCM)
Arcam has finalized the acquisition of the AP&C division from Raymor Industries for a total of 35 million Canadian dollars (“CAD”).
The total purchase price amounts to CAD 35 million where a cash payment amounting to CAD 20 million is paid on closing and the remaining part as two installments to be made in 2015 and 2016 subject to certain targets being met.
The AP&C division generated CAD 6.5 M of revenue during 2013 with an EBITDA result of about CAD 1.5 M. The acquired business, with currently 31 employees, will become a subsidiary of Arcam and continue operating with the existing management team. The acquisition is expected to have a positive effect on Arcam’s earnings per share in 2014.
AP&C uses proprietary Plasma Atomization technology to produce metal powders where titanium alloy powder today is the largest product. A significant part of AP&C sales is to the 3D-Printing industry. Other markets include Metal Injection Molding (MIM), powders for spray coatings as well as powders for HIPed components. Arcam and the team at AP&C intend to continue to expand the powder business and advance the Plasma Atomization technology.
“AP&C’s technology and market position for high-end metal powder is perfectly complementary to Arcam’s EBM system business, and strengthens Arcam’s position in the Additive Manufacturing market”, says Magnus René, CEO of Arcam.
The above information has been made public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published on February 12, 2014.
Arcam provides a cost-efficient Additive Manufacturing solution for production of metal components. The technology offers freedom in design combined with excellent material properties and high productivity. Arcam’s market is global with customers mainly in the orthopedic and aerospace industries. The company was founded in 1997 and is listed on NASDAQ OMX Stockholm, Sweden. Head office and production facilities are located in Mölndal, Sweden. Support offices are located in the US, UK, Italy and China.
Arcam AB • Krokslätts Fabriker 27A • SE-431 37 Mölndal, Sweden • 46-31-710 32 00 • www.arcam.com
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