There has been a development in the BCN3D situation, but it’s still not clear how this will end.
To recall, BCN3D, a long-time 3D printer manufacturer based in Spain, abruptly declared bankruptcy last week. The company develops FFF-powered 3D printers for professionals and industry, and faces mounting competition from low-cost Asian manufacturers, as do all players in this market.
The company, Barcelona Three Dimensional Printers (a.k.a. BCN3D), had raised over US$19M in investment during its tenure, but ultimately found itself at a precarious balance between assets and liabilities. They chose the bankruptcy route.
There is still no official statement on BCN3D’s website about any of this.
However, we now learn that there is a potential buyer for BCN3D, in some yet-to-be-determined form. According to a report on Expansión, a purchase proposal has been developed by Francesc Adell Poch, a professor at the University of Lleida, where he focuses on advanced manufacturing.
Professors typically don’t have the funds to acquire companies, so the bid is backed by a group of investors from the area, led by Terberfer and Inversions Vall 2012. Inversions Vall 2012 is ultimately controlled by Spirit Capital, a significant venture capital fund.
The report suggests the bidders intend on maintaining “all jobs” and “ensuring the viability of the firm”.
How much money are the investors putting into this deal? According to the report, it breaks down like this:
- Employee severance €311,609 (US$355K)
- Supplier contracts €155,168 (US$177K)
- Financing to maintain operations until closing €450,000 (US$513K)
- Cash purchase price €120,000 (US$137K)
This totals €1,036,777 (US$1.2M). Note that this is a proposed deal, one that has not been accepted by the bankruptcy administrators, and apparently it must also be approved by the Commercial Court. However, the proposal should be indicative of the company’s current value.
You’ll note that the actual purchase price is only 11.5% of the deal, indicating that the liabilities of the company far outweigh the value of the company itself. This is quite a low price for what was once one of the most notable names in the industry.
While this may seem positive, my concern is that nothing was mentioned in the report about changing the business situation. If the new owners continue to run the company as is, expect the same results: bankruptcy. Presumably they do have some type of plan to raise the business, which might include changes to sales & distribution, trimming product lines, new partnerships or something else. However, it’s not stated.
In other words, we still have to wait and see how this story ends. There are still a few directions it could go.
Via Expansión
