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3D printing company Solid Concepts sold

Posted: April 2, 2014 6:50 p.m.
Updated: April 2, 2014 6:50 p.m.

Scott McGowan shows a model of ZoomR, produced through 3-Dprinting, at Solid Concepts in Valencia.

 

Solid Concepts of Santa Clarita has agreed to be purchased by Stratasys for a total of $295 million, the two companies announced on Wednesday.

Under terms of the deal, Solid Concepts will receive $172 million upon closing.

Stratasys is headquartered in both Minneapolis, Minn. and Rehovot, Israel. Both companies provide 3D printing and additive manufacturing solutions.

In addition to Solid Concepts, Stratasys also announced it will buy Texas-based Harvest Technologies, an additive manufacturing service bureau.

When the deal closes, Stratasys will combine Solid Concepts and Harvest Technologies with its contract manufacturing subsidiary, RedEye, establishing one manufacturing services business unit. RedEye is located in Eden Prairie, Minn.

The transactions are expected to be completed early in the upcoming third quarter.

Solid Concepts President, Joe Allison, will join the Stratasys management team and lead the combined parts business.

Stratasys executives said they worked nine to 12 months to buy Solid Concepts and Harvest Technologies.

"Both firms are industry pioneers and innovators,” said Stratasys CEO David Reis in a statement to the media. "With them, we expect to significantly expand our (custom manufacturing) offering, target new applications and strengthen our customer relationships.”

Founded in Valencia in 1991, Santa Clarita’s Solid Concepts has some 450 employees, six factories and approximately $65 million in annual sales in 2013.

Solid Concepts uses a wide array of 3-D printers to manufacture plastic and metal prototypes and components for the medical and aerospace industries. Stratasys devices do not currently print with metal.

The company owns over 162 rapird prototyping machinery and equipment machines; 80 of those are additive machines, said a spokesperson for the company.

While 3-D printing is the term most often associated with the consumer processes, commercial firms refer to it as rapid prototyping, encompassing the industrial market, Solid Concepts’ Vice President of Marketing, Scott McGowan, told the SCV Business Journal in July 2013.McGowan said.

Solid Concepts has been supplying products for the medical manufacturing, industrial design and aerospace component manufacturing industries. At one point, the company produced thousands of customized implants for knee replacements.

Rapid prototyping is being used by many industries, and Solid Concepts has built a bit of everything, McGowan said.

“We are excited to be joining forces with Stratasys, a global leader in 3D printing and additive manufacturing,” said Joe Allison, president of Solid Concepts.

Becoming part of a larger company with a broad customer reach and market coverage will position Solid Concepts to meet the significant demand for its additive manufacturing offerings, Allison said.

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