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Arcam wraps up buy of Raymor Industries' AP&C division.

MANews-(C)2009-2014

12 February 2014 - Swedish Arcam AB (STO:ARCM), a provider of additive manufacturing solutions for the production of metal components, on Wednesday said it had closed its CAD35m (USD31.8m/EUR23.3m) takeover of Canadian Raymor Industries Inc's metal powders division AP&C .

Arcam paid CAD20m in cash upon completion of the deal and will disburse the remaining consideration in two instalments in 2015 and 2016 on condition that certain targets are achieved, the Swedish firm said.

The buyer previously said it would use available cash and its bank credit facility to bankroll the purchase, noting it had also been cleared by its shareholders to issue up to 400,000 new shares.

The acquisition of AP&C, which leverages a proprietary technology to manufacture metal powders and has been a provider of titanium powders to Arcam over the past years, is deemed complementary to the Swedish firm's technology and product portfolio, Arcam's CEO Magnus Rene said.

The addition of the particular business, which booked revenues of CAD6.5m and EBITDA of some CAD1.5m in 2013, is projected to boost the buyer's earnings per share this year.

Country: Canada

Sector: Metals/Mining

Target: The AP&C division

Buyer: Arcam AB

Vendor: Raymor Industries Inc

Deal size in USD: 31.8m

Type: Corporate acquisition

Financing: Cash & Debt, Existing resources, Rights issue

Status: Closed

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Publication:M & A Navigator
Date:Feb 12, 2014
Words:225
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