Trilantic Carves On-Demand Unit from 3D Systems

Trilantic North America has agreed to acquire the on-demand manufacturing (ODM) business of publicly traded 3D Systems for a purchase price of $82 million.

ODM provides on-demand 3D printing and custom manufacturing services to companies that operate in the aerospace, automotive, consumer entertainment, and industrial products sectors.

The sale of the ODM business includes the company’s more than 200 in-house 3D printers and its facilities in Tennessee, Washington, France, Italy, and the UK.

At the closing of this transaction – expected during the third quarter – the ODM business will be renamed QuickParts and will be led by new CEO Ziad Abou, who led the unit from 2012 to 2019.

“We are pleased that 3D Systems has chosen Trilantic to guide its on-demand 3D printing and custom manufacturing business through its next growth chapter,” said Charles Fleischmann, a partner at Trilantic. “The investment in QuickParts underscores Trilantic’s commitment and belief that Industry 4.0 can bring increased sustainability, decreased production time and costs, and enhanced business digitalization throughout the supply chain.”

“Industry 4.0” refers to the current trend of automation and data exchange in manufacturing technologies. The goal of Industry 4.0 is the creation of “smart factories” that utilize cyber-physical systems, the Internet of things, cloud computing and cognitive computing. Industry 4.0 is commonly referred to as the fourth industrial revolution.

South Carolina-headquartered 3D Systems (NYSE: DDD) designs, manufactures and sells 3D printers, 3D printing materials, 3D scanners, and 3D printing services that are used in the healthcare and industrial markets including the medical and dental, aerospace & defense, automotive, and durable goods sectors. In FY 2020, the company had revenues of more than $550 million and employed over 2,400 people in 25 offices worldwide.

“We are continuing to aggressively execute our four-phase plan that we announced a year ago, to position the company for exciting growth and profitability as the market for industrial-scale additive manufacturing continues to expand,” said Dr. Jeffrey Graves, the CEO of 3D Systems. “The ODM business, with its focus on the rapid production of components using a multitude of digital manufacturing methods, is a solid business that has a very bright future under the stewardship of Trilantic North America.”

Trilantic makes control and significant minority investments of $50 million to $300 million in North America-based companies that have enterprise values of $50 million to $1 billion. Trilantic was formed in 2009 by former members of Lehman Brothers Merchant Banking and is based in New York City.

© 2021 Private Equity Professional | June 10, 2021