Sweden’s Arcam AB, has signed an agreement to acquire the AP&C division from Raymor Industries for a total of $35 million Canadian dollars. The move will see Arcam secure its supply of titanium powder used in the production of components via the company’s Additive Manufacturing process.
AP&C is a global manufacturer of high quality metal powders and has been a supplier of titanium powders to Arcam since 2006. Titanium powder is an important part of Arcam’s offering to its customers.
“With this acquisition Arcam secures access to the optimum production of high grade metal powders for our customers and we also add technology and expertise in powder metal production for 3D-printing in general and other advanced applications,” stated Magnus René, President and CEO of Arcam.
AP&C uses proprietary plasma atomisation technology to produce metal powders, with titanium alloy powder being the largest product. A significant part of AP&C sales is to the 3D-Printing industry with other markets including 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 expand the powder business and advance the plasma atomization technology.
The AP&C division is expected to generate CAD$6.5 million of revenue during 2013 with an EBITDA result of around CAD$1.5 M. The acquired business, which currently employees 29, will become a subsidiary of Arcam and continue operating with the existing management team.
“With this deal we will be a part of the leading company in 3D-printing in metals. Because of our long term close cooperation with Arcam we know that this deal will give us a very good platform for continued growth in the 3D-printing industry. Being part of a larger group will also help in accelerating growth to better service the overall metal powder market”, stated Jacques Mallette, President of Raymor Industries and future President of Arcam’s powder business.
The total purchase price amounts to CAD$35 million where a cash payment amounting to CAD$20 million will be paid on closing and the remaining part as two instalments to be made in 2015 and 2016 subject to certain targets being met. Closing of the acquisition is subject to customary closing conditions and is expected to take place in the first quarter 2014.