Arcam AB, Mölndal, Sweden, has finalised the acquisition of the AP&C division from Raymor Industries for a total of $35 million Canadian dollars.
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 instalments to be made in 2015 and 2016 subject to certain targets being met.
The AP&C division generated CAD $6.5 million of revenue during 2013 with an EBITDA result of about CAD $1.5 million. 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 atomisation technology to produce metal powders. Titanium alloy powder is today the largest product. A significant part of AP&C sales is to the 3D printing industry. Other markets include Metal Injection Moulding (MIM) and 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 atomisation 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,” stated Magnus René, CEO of Arcam.
Arcam provides a cost-efficient Additive Manufacturing solutions for the production of metal components. The company states that its technology offers freedom in design combined with excellent material properties and high productivity. Arcam’s market is global with customers primarily 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, with support offices are located in the US, UK, Italy and China.