GE’s $599 million deal bolsters 3D bet after SLM purchase dies

Bloomberg

General Electric Co. has no intention of letting its 3-D printing ambitions die. A day after shareholder resistance derailed an acquisition in that market, GE said it would buy a 75 percent stake in closely held Concept Laser GmbH for $599 million. At the same time, GE bumped up the offer for Swedish 3D printing company Arcam AB to 300 kronor a share from 285 kronor.
The moves will fortify GE’s strategic bet on the so-called additive manufacturing market after the company on Wednesday abandoned a deal for SLM Solutions Group AG amid objection from shareholders of the German company, including billionaire investor Paul Singer.
“The speed with which GE was able to switch out SLM with a bid for Concept Laser is reflective of the asset-rich environment for 3-D printing players, as well as the company’s aspirations to build out its presence in this fast-growing new technology space,” Deane Dray, an analyst at RBC Capital Markets, said in a note. “These are not make-or-break investments for GE by any measure, but are complementary build-outs to its digital industrial transformation.”
GE is seeking to expand use of additive manufacturing as it focuses on building industrial equipment with digital capabilities. The Boston-based company, which already uses the machines to print fuel nozzles for jet engines, has said acquisitions can help it build a $1 billion 3-D printing business by 2020.