GE has tightened its grip on Arcam, with its subsidiary GE Sweden acquiring shares in Arcam from Elliott Management and Polygon Investment Group.
This brings GE’s total holding in Arcam to approximately 95 percent of its shares. This in turn gives GE the right under the Swedish Companies Act to buy out the remaining shares in Arcam, which GE has confirmed that it plans to do, delisting the company from the Swedish NASDAQ.
Meanwhile, Arcam is continuing to grow, having signed a lease agreement with Castellum to move its EBM business to a refurbished 11,800 sqm. facility in Härryda, outside Göteborg, Sweden in the first quarter of 2019. This facility is almost three times the size of the current site, allowing Arcam to significantly increase machine production capacity and to bring the various functions of logistics, research and development, services and operations together under one roof.
At the same time, Arcam is reviewing its options for its American contract manufacturing subsidiary, DiSanto Technology Inc (DTI). These options could include a restructuring, full or partial separation of DTI via a spin-off, sale, joint venture, strategic collaboration or other transaction. DTI offers contract manufacturing of orthopedic implants, using Arcam’s EBM technology alongside more conventional equipment and manufacturing capabilities. The review is being assisted by Viant Capital, LLC as financial advisor.
Finally, Magnus René, President and CEO of Arcam and Johan Brandt, CFO and deputy CEO of the Company, announced last month that they would resign from the company this year. René has been the driving force behind Arcam, having built the company from a start up to a major player in the metal additive manufacturing world. He explained: “I have had a fantastic journey, being part of the team building Arcam during those 16 years. Today, Arcam is well positioned, with a great team, world-class products, strong leadership in our companies and a strong cash position after the recently concluded share issue. With GE as majority owner this is a good time for me to move on and for a new CEO to take over and develop the company in the new environment.”
Rene will continue as CEO until a new CEO is appointed or at the latest until June 3, 2018, while Brandt will leave by April 30, 2018.