Additive Manufacturing Market 3D Systems to sell on demand manufacturing business for 82 million Dollars
USA — Additive manufacturing expert 3D Systems has signed an agreement to sell its On Demand Manufacturing business to private equity firm Trilantic North America. The purchase price is $ 82 million, subject to certain closing conditions and adjustments.
A year ago, 3D Systems announced a four-phase plan to position the company for growth and profitability as the market for industrial-scale additive manufacturing continues to expand. As part of this plan, the company now divests its on demand manufacturing business. According to 3D Systems’ President and CEO, Dr. Jeffrey Graves, the sole reason for divestiture is to enable the company's entire focus and investment priorities to be on additive manufacturing (AM). The business is to be taken over by Trilantic North America for the purchasing price of $ 82 million.
The sale includes the company’s On Demand Manufacturing experts and facilities in Lawrenceburg, Tennessee; Seattle, Washington; Le Mans, France; Pinerolo, Italy; and High Wycombe, England. 3D Systems’ On Demand Manufacturing business, which will be rebranded under Trilantic North America’s ownership as Quickparts, offers a variety of advanced and rapid manufacturing services, including additive and subtractive capabilities. As with the divestitures announced earlier this year, by taking this action 3D Systems wants to be more effectively focussing on its strategic purpose in enabling additive manufacturing solutions for applications in growing markets that demand high-reliability products. 3D Systems plans to continue its collaboration with Quickparts after the sale closes to support shared customers.
3D Systems announced earlier this month that the company is investing in a 50,000 square foot expansion of its presence in Littleton, Colorado to expand its healthcare and industrial application development and advanced production capabilities. Through this infrastructure investment, the company will add expertise and the most advanced metal additive manufacturing technologies to address new, more complex industrial applications such as those for aerospace, automotive, semiconductor, and energy.
The enhancements to the Littleton site is to complement the work being done at 3D Systems’ other application development and advanced manufacturing sites in Rock Hill, South Carolina; Moerfelden, Germany; Budel, Netherlands; and Leuven, Belgium. The company recently added metal 3D printing technology to its site in Leuven in support of the work its application development and advanced manufacturing teams do for the semiconductor capital equipment, aerospace, defense, and automotive industries. Additionally, 3D Systems plans to add both plastics and metals technologies to its Rock Hill, South Carolina location, including the recently announced Roadrunner High Speed Fusion 3D printing system.
3D Systems expects completion of the On Demand Manufacturing transaction to occur in the third quarter of 2021.