GE to Invest $1.4 Billion to Purchase Additive Manufacturing Companies Arcam and SLM GE, Boston, Mass., plans to acquire two suppliers of additive manufacturing equipment — Arcam AB, Mölndal, Sweden, inventor of an electron beam melting machine for metal-based additive manufacturing, and SLM Solutions Group AG, Lübeck, Germany, a producer of laser machines for metal-based additive manufacturing — for $1.4 billion. Both companies will report into David Joyce, president and CEO of GE Aviation, whom will lead their growth with the integration effort. He mentioned they “bring two different, complementary additive technology modalities as individual anchors for a new GE additive equipment business.” The headquarter and key operating locations of Arcam and SLM will be maintained, and their management teams and employees will also be retained. Arcam has approximately 285 personnel staff while SLM has 260. GE expects to grow the new additive business to $1 billion by 2020 and anticipates $3–5 billion of product costout across the company over the next ten years. Lincoln Electric, Alcoa, and TC PipeLines Report Second Quarter 2016 Results Many industrial companies have recently disclosed their second quarter 2016 results, including the ones listed below. Lincoln Electric Holdings, Inc., Cleveland, Ohio, reported a net income of $31.3 million, which includes $7.2 million due to the reversal of an income tax valuation allowance. Sales decreased 10.9% to $592.4 million; this reflects a 32.6% decline from unfavorable foreign exchange translation and lower volumes of 9.7% being partially offset by a 28.4% benefit from price and 3% increase from acquisitions. Lightweight metals provider Alcoa, New York, N.Y., had a net income of $135 million, including $78 million in special items primarily related to separation costs, restructuringrelated charges, and associated tax impacts. Revenue was $5.3 billion, down 10% from the second quarter of 2015. In addition, TC PipeLines, LP, Houston, Tex., noted net income attributable to controlling interests of $54 million and a distributable cash flow of $76 million. President Brandon Anderson of the company’s GP, Inc., division added that demand for transportation on the Gas Transmission Northwest pipeline was strong, providing an opportunity for incremental revenue, while Great Lakes benefited from additional contracted volumes. Solar Atmospheres Forms Vacuum Pump Services Corp. Solar Atmospheres, Souderton, Pa., has established Vacuum Pump Services Corp. A website detailing its services can be found at vacpumpservices.com. “We know vacuum pumps: when to have the pumps serviced, and how to service them correctly. This is the base reason for establishing our own organization. We have also serviced pumps for other organizations, even including our competitors. So we are eager to share our knowledge and expertise, Vice President of Operations Bob Sandora final tests a Rootstype vacuum blower torn down, repaired, and tested with a helium mass spectrometer. and to offer our services broadly across industry,” said William R. Jones, CEO of the Solar Atmospheres family of companies. Currently, there are three employees, including Vice President of Operations Bob Sandora and Manager of Operations Steve MacInnes. Falcon Steel Co. Is Now Falcon Steel America, LLC Falcon Steel America, LLC, Fort Worth, Tex., recently announced that Chase Bank, ReignRock Capital Partners, LLC, and Inverdale Capital Management, LLC, have recapitalized Falcon Steel. This transaction not only provides equity and debt financing to support future growth, but it also marks the company’s transition into its latest entity. “This is a milestone for Falcon because it gives our company the financial strength to purchase new equipment, hire new and highly skilled employees, make strategic acquisitions, and expand into areas that offer outstanding growth opportunities for the entire Falcon team,” said Jim Taylor, CEO of Falcon. Recent Acquisitions • Trescal, Paris, France, an international provider of calibration services, has acquired Precision Metrology, Inc., a calibration services provider in Wisconsin and Florida. With a turnover of around $11 million, the company employs close to 90 people. Its founder, Carol Shipley, will remain in her current position. This transaction has been completed with the support of Ardian, Trescal’s majority shareholder. • British Engineering Services has confirmed the acquisition of Nortest Ltd., a UK nondestructive examination business in Salford that also offers welding certification services. This represents British Engineering’s first acquisition since gaining independence from insurer RSA in November last year. • Haun Welding Supply, Inc., Syracuse, N.Y., has purchased Danes Welding Supplies, Ontario, N.Y., and in a separate transaction, Johnson Welding Supply, Batavia, N.Y. These companies provide compressed and liquid gases, as well as welding products and equipment. BUSINESS BRIEFS 22 WELDING JOURNAL / NOVEMBER 2016 WJ
Welding Journal | November 2016
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