DGAP-News: SLM Solutions Group AG (i. Gr.) / Key word(s): IPO
SLM Solutions plans IPO in 2014
07.04.2014 / 07:59
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NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES,
CANADA, JAPAN OR AUSTRALIA.
- SLM Solutions, a technology leader in metal based 3D printing, plans
initial public offering ("IPO") on Frankfurt Stock Exchange
- Integration of technology into manufacturing processes expected to result
in high market growth of metal based 3D printing
- A technological leadership position and diverse and growing customer base
put SLM Solutions in strong position to benefit from expected market growth
Luebeck, 7 April 2014 - SLM Solutions Group AG (in the course of
incorporation) (together with its subsidiaries "SLM Solutions" or "SLM
Group"), a leading provider of metal based additive manufacturing
technology (also commonly referred to as "3D printing"), is preparing an
IPO on the Prime Standard segment of the regulated market of the Frankfurt
Stock Exchange.
SLM Solutions is a pioneer in additive manufacturing and a technology
leader serving a diverse and growing customer base, including an increasing
number of blue chip customers, from various industries such as aerospace,
energy, healthcare and automotive. Headquartered in Luebeck, SLM Solutions
is a German engineering company with global reach, having generated around
67% of revenues from customers outside Germany in 2013.
Dr. Markus Rechlin, CEO of the SLM Group, sees the planned IPO as a chance
to further advance SLM Group's profitable growth: "We believe the market
for metal based 3D printing is at an inflection point with the technology
being ready for industrial series production due to excellent material
properties and full freedom of design for parts produced with selective
laser melting. Some of SLM Solutions' employees rank among the pioneers of
the selective laser melting technology. Using their knowledge and
experience, the SLM Group was able to develop solutions to integrate
selective laser melting systems into complex production processes. In this
field we acquired a technological leadership position. We expect that the
sector will enjoy significant growth over the coming years, and our top
priority is to remain at the forefront of these developments as technology
leader in the space."
Enormous addressable market
Today, the overall market for 3D printing possesses substantial growth
potential, expected to increase from USD 2.204 billion in 2012 to USD 6
billion by 2017 and to USD 10.8 billion by 2021 worldwide according to
industry expert Wohlers Associates. Metal based additive manufacturing
accounted for only EUR 161 million or around 9% of the overall 3D printing
market in 2012 but in the view of SLM Solutions offers particularly
attractive growth prospects as metal based additive manufacturing is
increasingly used for direct part manufacturing instead of prototyping.
SLM Solutions is a specialist in solutions for direct part production, the
most direct application of additive manufacturing to production
environments. This technology is especially attractive in markets where
traditional manufacturing technologies limit the customer's flexibility as
to functionality, geometry, complexity or weight of the parts produced. SLM
Solutions' product portfolio consists of the selective laser melting
systems SLM 125HL, SLM 280HL and SLM 500HL serving different customer
requirements, especially in terms of size, speed and cost. The SLM 500HL,
having been introduced in 2013 as the flagship product, lends itself to the
serial production of larger parts in industrial environments.
Technological leadership position
SLM Solutions' selective laser melting systems are among the most
productive in their respective classes providing an advantage for
integration in industrial production environments. The systems are equipped
with a powerful multi laser technology (including a hull-core imaging
process) which increases build speeds significantly. Additional
distinguishing features like the patented bidirectional loader movement and
an automated powder recycling technology further optimize production costs,
build rates and surface finish.
SLM Solutions' systems work with a wide range of materials, such as
aluminium, cobalt-chromium stainless steel, tool steel, inconel, super
alloys and titanium.
High barriers to entry into SLM Group's market
SLM Solutions is an industry pioneer with a multi-decade history of
innovation, taking into account its predecessor companies. The long track
record of innovation and its deep and interactive customer relationships
put SLM Solutions in a strong position to benefit from the expected market
growth. SLM Solutions' technological capabilities and substantial process
know-how are critical to provide customers with superior solutions
optimized to drive the integration of metal based 3D printing into their
manufacturing processes.
Increasing adoption of proven technology
While young relative to metal machining and traditional manufacturing
technologies, metal based additive manufacturing technologies have been
developed since 1995 and today are well established and ready for volume
production. A large and growing base of industrial customers is focussing
on identifying an increasing number of applications for metal based
additive manufacturing for direct part production. SLM Solutions has a
diverse and growing customer base, which includes, among others, NASA,
EADS, SpaceX, General Electric ("GE") in its global research, aviation and
energy branches, Siemens, Alstom, BEGO Bremer Goldschlägerei and BMW. SLM
Solutions' systems are deployed in some of the most demanding industries
where mission-critical parameters such as density, durability, temperature
or corrosion resistance, surface structure or bio-compatibility cannot be
compromised.
Profitable and fast growing selective laser melting business segment
With more than 80 employees, the SLM Group generated EUR 21.6 million of
revenue in the 2013 financial year (all figures IFRS) representing
annualised growth of 35% since 2011. In 2013, the selective laser melting
business segment already accounted for 77% of SLM Group's total revenues.
The compound annual revenue growth rate in this business segment was 99%
from 2011 to 2013 with the number of machines sold per year increasing from
7 to 28. The SLM Group generated an adjusted EBITDA margin of 11.5% for the
most recent fiscal year. In the first three months of 2014, SLM Solutions
recorded an order intake of 7 machines compared to 3 machines in the
prior-year period. Hence, the first quarter - typically the weakest of the
year - already provides a strong tailwind for the 2014 fiscal year.
Uwe Bögershausen, CFO of the SLM Group, commented: "Over the past three
years, every year on average SLM Solutions has doubled its sales revenues
from its selective laser melting business segment with a double digit
operating margin. We aim to continue this profitable growth through a focus
on three initiatives: the strengthening of our international sales force
and service network, developing the business with consumables. i.e. metal
powders, used by our selective laser melting systems, and continued focus
on R&D." SLM Solutions' Management board intends to generate IPO proceeds
for the company in the range of approximately EUR 75 million before issue
costs to finance the growth strategy.
Dr. Rechlin sees SLM Solutions as excellently positioned to pursue the
company's growth strategy: "Today, SLM Solutions is a technological leader
in its sector. Going forward, we will leverage our position and place
additional emphasis on targeting the 3D printing industry's fastest-growing
market segments, where we have blue chip customers such as GE, Siemens and
NASA relying on our expertise. An IPO is the logical next step in our
company's life and will support the implementation of our targeted growth
strategy."
Credit Suisse and Deutsche Bank have been appointed as Joint Global
Coordinators and Joint Bookrunners. Co-Lead Managers are BHF-BANK and
Canaccord Genuity. Equinet Bank will act as selling agent. SLM Solutions
will publish further details on the planned IPO as appropriate.
Further information about SLM Solutions and a company presentation with
detailed information about the business model, market and growth strategy
can be downloaded from its website at: http://www.slm-solutions.com.
About the company:
SLM Solutions Group AG (in the course of incorporation), headquartered in
Luebeck, Germany, is a leading provider of metal based additive
manufacturing technology (also commonly referred to "3D printing"). SLM
Solutions focuses on the development, assembly and sales of machines and
integrated system solutions in the field of selective laser melting, vacuum
and metal casting. SLM Solutions currently employs over 80 people in
Germany and the USA. The products are used worldwide by customers in
particular from the aerospace, energy, healthcare and automotive
industries. SLM Solutions stands for technologically advanced, innovative
and highly efficient integrated system solutions.
Contact:
Henryk Deter
cometis AG
Unter den Eichen 7
65195 Wiesbaden
Telephone: +49 (0) 611-205855-13
Fax: +49 (0) 611-205855-66
Email: deter@cometis.de
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Disclaimer:
This announcement is not for publication or distribution, directly or
indirectly, in or into the United States of America. This announcement is
not an offer of securities for sale into the United States. The securities
referred to herein have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the
United States, except pursuant to an applicable exemption from
registration. No public offering of securities is being made in the United
States.
No offer or sale of transferable securities is being, or will be, made to
the public outside Germany and Luxembourg. Offers in Germany and Luxembourg
will be made exclusively by means of and on the basis of a prospectus that
will be published and will be available free of charge on SLM Solutions'
website (http://www.slm-solutions.com) and at the Frankfurt offices of
Credit Suisse and Deutsche Bank.
End of Corporate News
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261797 07.04.2014
DGAP-News: SLM Solutions plans IPO in 2014
| Quelle: EQS Group AG