Arcam AB has announced that its Board of Directors has unanimously recommended that the company’s shareholders accept an offer made by GE to acquire the Swedish company. The offer values Arcam’s ordinary shares at SEK 285 per share, corresponding to a total offer value of SEK 5,855,776,725 (US $686,322,797). GE stated that it intends to maintain Arcam’s current operations and locations, as well as retaining existing management and employees.
GE Sweden Holdings AB, a Swedish company within the GE Aviation operating unit and an indirectly wholly-owned subsidiary of General Electric Company, announced the public cash offer to the shareholders of Arcam. The acceptance period of the offer is expected to commence on September 7, 2016 and expire on October 14, 2016.
Completion of the offer is conditional upon, amongst other things, GE becoming the owner of more than 90% of the total number of shares in Arcam and the receipt of all necessary regulatory, governmental or similar clearances, approvals and decisions, including from competition authorities
Arcam added that, in the Board’s opinion, it has a well-defined and viable strategy going forward with the company’s unique Electron Beam Machines (EBM) production method and its proprietary plasma atomisation powder manufacturing. The company has made significant investments during recent years and has grown considerably.
In terms of the company’s long-term prospects, the Board believes that the demand for the company’s technology for Additive Manufacturing of aerospace and orthopaedic implant products and components will increase dramatically, meaning that the market has favourable long-term growth opportunities.
However, in assessing the merits of the offer, the Board has also considered that the company, on the whole, has limited resources and that it operates in a demanding and regulated environment with long lead times. Further, the market for Additive Manufacturing is still rather immature and may become subject to technological leaps that may require substantial investments for Arcam in delivering on its business plan.
GE has stated that Arcam’s strategy and offering align to GE’s vision of building its own expertise and capabilities in Additive Manufacturing to serve customers in the global industrial community. It added that GE has adequate resources in implementing and taking advantage of Arcam’s growth and business opportunities and will provide know-how and expertise to further leverage Arcam’s technology and to forcefully go to market with Arcam’s products and services.