FAIRFIELD (dpa-AFX) - General Electric Co. (GE) announced plans to acquire two suppliers of additive manufacturing equipment, Arcam AB and SLM Solutions Group AG, for $1.4 billion. GE expects Arcam and SLM to bolster its existing material science and additive manufacturing capabilities. Each acquisition is structured as a public tender offer for all of the outstanding shares of stock of each company.
Arcam AB, based in Mölndal, Sweden, invented the electron beam melting machine for metal-based additive manufacturing, and also produces advanced metal powders. Arcam generated $68 million in revenues in 2015 with approximately 285 employees.
SLM Solutions Group, based in Lübeck, Germany, produces laser machines for metal-based additive manufacturing. SLM generated $74 million in revenues in 2015 with 260 employees.
GE noted that 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 and also will lead the integration effort and the GE Store initiative to drive additive manufacturing applications across GE.
GE expects to grow the new additive business to $1 billion by 2020 at attractive returns and also expects $3 billion-$5 billion of product cost-out across the company over the next ten years.
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