GE To Acquire Two 3D Printing Companies for $1.4 Billion

Additive manufacturing companies Arcam from Sweden and SLM Solutions Group based in Lübeck, Germany, are to be acquired by GE for $1.4 billion.
“Additive manufacturing is a key part of GE’s evolution into a digital industrial company. We are creating a more productive world with our innovative world-class machines, materials and software. We are poised to not only benefit from this movement as a customer, but spearhead it as a leading supplier,” said Jeff Immelt, Chairman and CEO of GE. “Additive manufacturing will drive new levels of productivity for GE, our customers, including a wide array of additive manufacturing customers, and for the industrial world.”
GE’s expectation is to grow the new additive (also called 3D printing) business to $1 billion by 2020 as well as initiating $3-5 billion of product cost-out across the company over the next ten years.
Arcam’s revenues in 2015 were $68 million and has sites in Canada and the United States in addition to Sweden. SLM generated $74 million in revenues in 2015 and operates out of Germany.
Both companies are specialists with Arcam having invented the electron beam melting machine while SLM Solutions produces laser machines, both of which are for metal-based additive manufacturing. Both companies have aerospace customers.
Arcam and SLM will bolster GE’s existing material science and additive manufacturing capabilities. As GE has invested around $1.5 billion in manufacturing and additive technologies since 2010, the acquisition of Arcam and SLM will serve to further strengthen the comany’s position. GE has alread develop additive applications across six of its businesses.
David Joyce, president & CEO of GE Aviation who will lead the integration of the new acquisitions into the GE business said: “We love the technologies and leadership of Arcam AB and SLM Solutions. They each bring two different, complementary additive technology modalities as individual anchors for a new GE additive equipment business to be plugged into GE’s resources and experience as leading practitioners of additive manufacturing. Over time, we plan to extend the line of additive manufacturing equipment and products.”
3D printing involves taking digital designs from computer aided design (CAD) software, and laying horizontal cross-sections to manufacture the part. Additive components are typically lighter and more durable than traditionally-manufactured parts because they require less welding and machining.