The ExOne Company (NASDAQ: XONE) (“ExOne” or “the Company”), a global provider of three-dimensional (“3D”) printing machines and printed products to industrial customers, announced that it has acquired two operations in support of its strategy to broaden its post-print processing capabilities.
David Burns, President and Chief Operating Officer of ExOne commented, “We believe that vertically integrating the processes surrounding additive manufacturing will help to accelerate the adoption cycle for 3D printing in the industrial market place. These acquisitions represent critical post-print processes that are components of the 3D printing value chain.”
ExOne has developed unique materials and processes for its customers to target improvements in the Company’s sand core production systems. With the acquisition of MWT – Gesellschaft für Industrielle Mikrowellentechnik mbH (“MWT”), a pioneer in industrial grade microwaves with leading design and manufacturing experience, ExOne has enhanced its position as the market leader of 3D sand production systems for industry.
Industrial grade microwaves are used for thermally processing certain sand molds or cores that are 3D printed using binders, such as the more environmentally benign phenolic binder that requires a drying process. Importantly, microwave technology improves casting quality and reduces production costs for customers in specific industries, such as magnesium parts for aviation and steel alloy parts for hydraulic components.
ExOne acquired MWT for approximately $4.8 million in cash as part of the Company’s vertical integration strategy. Based in Elz, Germany, MWT designs and manufactures equipment that is currently used in ExOne’s production service center (“PSC”) operations. ExOne also plans to offer this technology to customers in future system sales. MWT’s microwave operation will be operationally integrated with the Company’s Augsburg, Germany manufacturing operations.
The Company also acquired the assets of Machin-A-Mation, a specialty machine shop located in Chesterfield, Michigan, for approximately $5.0 million. Machin-A-Mation’s capabilities fit well within ExOne’s ExCast strategy, which is focused on each element of the additive manufacturing process from design to finish of complex parts for industrial customers. The Machin-A-Mation business will remain in its current Michigan location, complementing the Company’s nearby PSC in Troy, Michigan. This PSC focuses on advanced 3D printed cores and molds for the aerospace and shipbuilding industries. In addition, ExOne expects to continue to serve and expand the existing Machin-A-Mation industrial customer base.
Mr. Burns continued, “In the manufacture of precision parts, there are several steps to completion. Machin-A-Mation’s specialty precision machining expertise helps us address the finishing requirements for complex parts which are cast from our 3D printed sand molds. The addition of the capabilities of both MWT and Machin-A-Mation enable us to better satisfy the needs of our growing industrial customer base in a more comprehensive manner.”