There’s big news in the metal 3D print market: Trumpf has sold its additive manufacturing business.
The German company has been at the forefront of metal AM for industry for many years. Trumpf is at its heart a machine tools and laser company, which greatly assisted the development of their 3D print equipment. However, it seems that the company has changed its strategy.
An announcement Friday reveals that Trumpf has signed an agreement with Lenbach Equity Opportunities III, a venture capital fund, to acquire all of its AM business and technology.
The divestment is part of the company’s strategy to focus on its core businesses, as additive manufacturing was evidently seen as a sideline activity.
There’s quite a bit of change involved. Apparently, all staff located in Germany and the US “are to be transferred” to the new headquarters located in Schio, Italy. They are even changing the branding:
“The brands “TRUMPF” and “TruPrint” will continue to be used during a transitional period. A new company name and an independent brand identity will be gradually introduced following the completion of the transaction.”
This is quite puzzling, as the press release really does not explain the root of this change. There are many questions. If the AM business was less profitable, then why would a VC fund buy it? Why are VCs investing in AM companies when the reputation of AM has been spoiled by several high-profile investment failures in the past two years?
There has been a recent push towards military manufacturing, which has been very welcomed by metal 3D printer manufacturers. The ReArm Europe program in particular is certain to shower metal AM providers with significant revenue, so why would Trumpf sell off its AM business? Is that why LEO III invested?
The fund managers apparently specialize in corporate carve-outs, which is precisely what’s happening here. The press release indicates that they will continue to provide service to existing customers, and they state an intent to become a technologically leading company in the space.
Ominously, they also say that “internal structures and processes are to be simplified, enabling customer needs worldwide to be addressed more quickly and effectively”, suggesting that there might be cuts to existing staff.
It may be that the LEO III fund believes that it can sufficiently optimize the company to take advantage of upcoming AM needs to become profitable. All of this also suggests that Trumpf’s AM business might not have been profitable, and that might be one of the reasons for the divestment.
This is a big move for Trumpf and it could be a big deal in the metal AM world. The LEO III fund just might be able to make this metal 3D print operation into something much larger than it’s previously been.
Via Trumpf and LEO III Fund (Hat tip to Benjamin)
