GE plans to invest US$1.4bn to acquire additive manufacturing companies Arcam and SLM

GE reported plans to acquire two suppliers of additive manufacturing equipment, Arcam AB and SLM Solutions Group AG for US$1.4bn. 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. In addition, he 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 US$1bn by 2020 at attractive returns and also expects US$3-5bn of product cost-out across the company over the next ten years. Arcam AB, based in Mölndal, Sweden, invented the electron beam melting machine for metal-based additive manufacturing, and also produces advanced metal powders. Its customers are in the aerospace and healthcare industries. Arcam generated US$68m in revenues in 2015 with approximately 285 employees. In addition to its Sweden site, Arcam operates AP&C, a metal powders operation in Canada, and DiSanto Technology, a medical additive manufacturing firm in Connecticut., as well as sales and application sites worldwide.
SLM Solutions Group, based in Lübeck, Germany, produces laser machines for metal-based additive manufacturing with customers in the aerospace, energy, healthcare, and automotive industries. SLM generated US$74m in revenues in 2015 with 260 employees. In addition to its operations in Germany, SLM has sales and application sites worldwide.