DiSanto Technology Acquired by Arcam
MÖLNDAL,, Sweden–(BUSINESS WIRE)–
The acquisition of DiSanto Technology (DiSanto), a strategic partner to Arcam (ARCM.ST) since February 2013, combines Arcam’s leading edge Additive Manufacturing technology with DiSanto’s full-service contract manufacturing services for orthopedic implants. Through DiSanto Arcam will offer customers, including industry-leading orthopedic and spinal implant companies, manufacturing of advanced EBM-based implants and other components.
The combination of Arcam’s EBM technology and DiSanto´s know-how in orthopedic implant manufacturing will accelerate the market adoption of Additive Manufacturing in the implant industry. DiSanto’s expertise in implant engineering and production of finished components is thus expected to leverage Arcam’s EBM technology for Additive Manufacturing of orthopedic implants.
DiSanto is a fully equipped and certified production facility for the production of finished orthopedic implants with approximately 100 employees. In the last 12 months DiSanto generated approximately USD 12M in revenue and an EBIT of USD 0.6M. The total purchase price amounts to USD 15.8M paid in cash and through the execution of Arcam stock options issued to the sellers in February 2013.
The acquired business will become a subsidiary of Arcam and continue operating with the existing management team. The acquisition is expected to have a positive effect on Arcam’s earnings per share in 2014.
“Through this acquisition Arcam’s offering will cover the entire supply chain for our customers: Metal powders through AP&C, acquired earlier this year, EBM systems and services through Arcam AB and finished products through DiSanto. The acquisition is thus in line with our growth strategy, it complements our technology and product portfolio, and it is immediately accretive. We are very pleased to welcome the skilled DiSanto team to the Arcam group”, says Magnus René, CEO of Arcam.
“With this deal we will be part of the leading company in 3D-printing in metals. This will enable us to help customers in rapidly developing product applications and to commercially produce products for them with Arcam’s cost-efficient, regulatory-cleared Additive Manufacturing technology. Being part of a larger group will also help in accelerating growth to better serve the growing implant market”, says Ronald F. Dunn, President of DiSanto Technology.
Viant Capital LLC acted as Arcam’s advisor in connection with the acquisition.
About DiSanto Technology, Inc.
DiSanto was founded by Ottavio DiSanto in 1967 as a general contract manufacturer. Over the years, the company has specialized in contract manufacturing of orthopedic implants and today the company has a clientele consisting of major orthopedic device companies. DiSanto provides its customers with engineering, development and production of implants and instruments of metal and plastic implants and components. DiSanto is certified to ISO 9001, ISO 13485 and the company is registered with the FDA as a contract manufacturer. The company is located in Shelton, Connecticut, an area with a thriving implant industry. www.disanto.com
Arcam offers industrial 3D-printing solutions for metals. Arcam’s technology, EBM®, makes possible cost efficient manufacturing of products with advanced functionality. Arcam’s market is global with customers mainly in the orthopedic and aerospace industries. Arcam is listed on Nasdaq OMX Stockholm and the Head Office is located in Mölndal, Sweden. The Group provides 3D-printing systems through Arcam AB in Sweden, Metal powders through AP&C in Canada and Implant Contract Manufacturing though DiSanto in the US. The group has about 220 employees.
Arcam provides a cost-efficient Additive Manufacturing solution for production of metal components. The technology offers freedom in design combined with excellent material properties and high productivity. Arcam’s market is global with customers mainly in the orthopedic and aerospace industries. The company was founded in 1997 and is listed on NASDAQ OMX Stockholm, Sweden. Head office and production facilities are located in Mölndal, Sweden. Support offices are located in the US, UK, Italy and China.
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