Founder and chairman of SLM Solutions Group, Hans-Joachim Ihde, says: "General Electric has already accompanied us as a user and customer since our inception. It assumed a pioneering role in aerospace technology and was early to identify the benefits of selective laser melting – for example in terms of savings in the weight of components. It is entirely familiar with SLM Solutions' multi-laser technology and its advantages vis-a-vis our competitors."
In a business combination agreement concluded between GE Aviation and SLM Solutions in September 2016, GE Aviation stated its intention to maintain and expand company headquarters in Lübeck, Germany, as well as other sites and to “continue to foster and support SLM Solutions' innovative corporate culture in the future”.
GE adds: “The further development of SLM Solutions into a supplier of solutions for additive manufacturing is an important strategic step for GE Aviation on its path to becoming a digital industrial company.
Since its IPO in 2014, SLM Solutions has pursued a three pillar strategy of expanding the worldwide sales and service network, focusing on research and development and on the company's further development into an integrated solutions supplier. Earlier this year, two strategic supply partnerships were agreed. The first relates to consumables: establishment of a joint venture with German firm TLS Technik for manufacture of aluminium alloy powder, to an annual production capacity of 100 tonnes. The second pertains to software: establishment of a joint venture with Austrian firm CADS to develop proprietary design software, after cooperation with the previous third party was deemed to be “unable to meet the special characteristics of selective laser melting and our customer requirements to the extent required.”
CEO Dr. Markus Rechlin explains the advantages of a merger: "GE Aviation is a strong partner with outstanding technology expertise. Together, we will continue to develop our technology at our site in Lübeck and position our company on an even broader basis as part of a large, internationally successful group. We expect the takeover to accelerate SLM Solutions' evolution into a comprehensive systems supplier. For this reason, the takeover offers great opportunities for our employees and customers."
If the takeover offer is successful, 31.5 % of the company's shares, which are currently held by existing shareholders, will be transferred to GE Aviation. Other significant shareholders include Ihde (24.1%), board member Henner Schöneborn (2%) and private equity firm Parcom Deutschland.
The deal follows news that Siemens has acquired 85% of additive manufacturing firm Materials Solutions Ltd of Worcester.
(TEXT BELOW WAS ADDED 15 SEPTEMBER)
At the same time, GE launched a bid for Swedish firm Arcam AB, which manufactures metal additive manufacturing machines using a different technology. Together, both acquisitions will cost $1.4 billion. Terms of the Arcam deal are similar to that for SLM Solutions: the acquisition is structured as a public tender offer; Arcam headquarters and locations are to remain, and it will report to GE Aviation head David Joyce.
In a GE press release, he 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.”
