Prodways Group, a Groupe Gorgé company, announced today that it has acquired the US 3D printing maker Solidscape Inc., a subsidiary of Stratasys (NASDAQ: SSYS).
Prodways Group is a leading player in industrial 3D printing that posts the highest revenue growth rates among publicly listed industry players. The Group was created five years ago and now has 400 employees.
As an integrated player that offers its customers 3D printing systems (machines, materials and software) as well as 3D-printed parts, the Group develops several lines of 3D printers based on different technologies:
- stereolithography, with its MOVINGLight® series for 3D printing with resins and ceramics;
- laser sintering for plastics;
- Rapid Additive Forging for the 3D printing of large metal parts.
The machines designed by Prodways based on these three technologies are used primarily in a manufacturing setting, most often as a substitute for conventional production methods.
Solidscape is an established player in the 3D printing industry. Since it was founded in 1994, the company has been developing a leading 3D printing technology for investment casting applications, particularly for the jewelry market.
Drawing on its patent portfolio, Solidscape offers machines and materials that enable users to print wax models of unrivaled quality and precision to be used in casting processes. Since its inception, Solidscape has sold more than 5,000 machines that are used in manufacturing, mainly in the jewelry and investment casting sectors. These sales are spread over Europe, America and the rest of the world through a large distribution network. Solidscape was acquired by Stratasys in 2011.
The MOVINGLight® technology, which is already available to the jewelry market, the burnout resins developed by Prodways Materials, and Solidscape's proprietary technologies complement one another perfectly and will give the new Group a comprehensive, global and unmatched offer on the investment casting market, from mass manufacturing to high-precision manufacturing. This new offer is expected to spur Solidscape's business growth.
A major transaction for Prodways Group
This acquisition solidifies the positioning of Prodways Group, which bases its strategy on 3D printing manufacturing applications. These markets are experiencing the gradual supplanting of traditional manufacturing techniques by 3D printing processes. The investment casting application, particularly for jewelry, is an indicative example. The added value offered by the technology enables the sale not only of machines but also of materials and supplies. This recurrence model is a feature of the 3D printing technologies using plastic, resins and waxes developed by Prodways.
Consolidated over 12 months, Solidscape should generate revenue greater than $10 million in 2019, of which nearly 50% from sales of materials and supplies. The expected synergies, and particularly the marketing of small MOVINGLight® machines through the Solidscape network, should help the new subsidiary post a double-digit EBITDA by 2020. The brand name, management, and 66-person staff based in Merrimack, New Hampshire, United States, will be retained. This transaction will substantially expand Prodways Group's presence in North America and increase its global geographic coverage through an international distribution network.
"The acquisition of Solidscape dovetails with Prodways Group's overall strategy and is a unique opportunity to bolster its machine sales business and expand its portfolio of technologies, while gaining excellent geographic coverage and teams renowned for their expertise in additive manufacturing" said Raphaël Gorgé, Chairman and Chief Executive Officer of Groupe Gorgé.
"Since 2011, Stratasys proudly promoted Solidscape and its proprietary technology as part of its product portfolio. As Stratasys moves strategically to more focus on specific vertical markets , we believe that this acquisition is beneficial for all parties and we wish Prodways the best of luck in accelerating the growth of Solidscape and maintaining its position as a market leader in its core markets" said Rich Garrity, President of Stratasys Americas.
The transaction, whose amount is not being disclosed, will be paid for entirely in cash.
Next report
Publication of half-year revenue on Friday July 27, 2018 before market opening.
About Groupe Gorgé
Founded in 1990, Groupe Gorgé is an independent group that specializes in high-tech industries. Today, the Group is active in the fields of security and protection in extreme environments, as well as in the 3D printing sector. In its more than twenty-five year history, Groupe Gorgé has always developed and driven the latest technological and industrial innovations.
Smart Safety Systems: Developing complete, innovative technological solutions for complex missions in hostile and confined environments.
Protection of High-Risk Installations: Protecting people and ensuring the active and passive protection of installations for energy markets and industrial and tertiary sectors in France. Ensuring the maintenance of these protection systems.
3D Printing: Enabling major industry players to find new routes to successful innovation and production processes by providing 3D printers, premium material, software and 3D printed parts.
In 2017, the Group reported revenue of €276.7 million. It is backed by 2,000 employees and operations in over ten countries.
More information available on www.groupe-gorge.com
Groupe Gorgé is listed on Euronext Paris Compartment B.
ISIN code: FR0000062671
Ticker code: GOE
Contact
Groupe Gorgé - Raphaël GORGÉ - CEO & Chairman - Tel.: +33 1 44 77 94 77 - E-mail: contact@groupe-gorge.com
Finance News - Anne-Pauline PETUREAUX - Analysts/Investors Relations - Tel.: +33 1 53 67 36 72 - E-mail: apetureaux@actus.fr
Finance News - Jean-Michel MARMILLON - Press Relations - Tel.: +33 1 53 67 36 73 - E-mail: jmmarmillon@actus.fr
Disclaimer
GROUPE GORGE press releases may contain forward-looking statements regarding GROUPE GORGE's targets. These forward-looking statements reflect GROUPE GORGE's current expectations. Such forward-looking statements and targets depend on known and unknown risks, uncertainties and other factors that could cause actual results, performance or events to differ materially from those anticipated herein. The risks and uncertainties that could affect the Group's future ability to achieve its targets include, in addition to those indicated in the press release: the strength of competition; the development of markets in which the Group operates and notably the 3D printing division; currency fluctuations; obtaining the export authorizations that may be required for certain activities; control of costs and expenses; changes in tax legislation, laws, regulations or their enforcement; our ability to successfully keep pace with technological advances; our ability to attract and retain qualified personnel and key staff; the evolution, interpretation and uniform application and enforcement of International Financial Reporting Standards (IFRS), according to which we prepare our financial statements; manufacturing and supply chain bottlenecks; the performance of our business partners (subcontractors, agents, suppliers, etc.). Some of these risk factors are set forth and detailed in our Document de Référence (Registration Document including the annual financial report filed with the French Autorité des Marchés Financiers), available on our website www.groupe-gorge.com. This list of risks, uncertainties and other factors is not limitative. Other unanticipated, unknown or unforeseeable factors, such as changes in the economic situation or financial markets, could also have a material adverse effect on our targets.
This press release and the information it contains do not constitute an offer to sell or to subscribe, or a solicitation to purchase or subscribe shares or securities in GROUPE GORGE or in its listed subsidiaries in any country whatsoever.
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