Arcam to make strategic acquisition of metal powder manufacturer to secure supply of strategic raw materials

Arcam has signed an agreement to acquire the AP&C division from Raymor
Industries for a total of 35 million Canadian dollars (“CAD”) in a combination
of upfront cash payment and installments.
AP&C is a global manufacturer of high quality metal powders and has been a
supplier of titanium powders to Arcam since 2006. Titanium powder is an
important part of Arcam’s offering to its customers. With this acquisition,
Arcam has secured access to high quality titanium powder for its customers’
quickly growing business.
AP&C uses proprietary Plasma Atomization technology to produce metal powders
where titanium alloy powder today is the largest product. A significant part of
AP&C sales is to the 3D-Printing industry. Other markets include Metal Injection
Molding (MIM), powders for spray coatings as well as powders for HIPed
components. Arcam and the team at AP&C intend to continue expand the powder
business and advance the Plasma Atomization technology.

The AP&C division is expected to generate CAD 6.5 M of revenue during 2013 with
an EBITDA result of about CAD 1.5 M. The acquired business, with currently 29
employees, will become a subsidiary of Arcam and continue operating with the
existing management team.

The total purchase price amounts to CAD 35 million where a cash payment
amounting to CAD 20 million will be paid on closing and the remaining part as
two installments to be made in 2015 and 2016 subject to certain targets being
met. The acquisition is expected to have a positive effect on Arcam’s earnings
per share in 2014.

Closing of the acquisition is subject to customary closing conditions and is
expected to take place in the first quarter 2014.

Financing is secured through existing cash and a bank credit facility. Arcam
also has the possibility to issue up to 400,000 new shares through the
authorization given to the Board of Directors by the extraordinary general
meeting held on December 6, 2013.

Viant Capital LLC has been acting as Arcam’s M&A advisor in connection with the
acquisition. Carnegie is acting as the Company’s financial advisor.

 “With this acquisition Arcam secures access to the optimum production of high
grade metal powders for our customers and we also add technology and expertise
in powder metal production for 3D-printing in general and other advanced
applications,” says Magnus René, President and CEO of Arcam. “This acquisition
is consistent with our growth strategy, complements our technology and product
portfolio, and is immediately accretive. We are very pleased to welcome the
skilled team at AP&C to the Arcam group“

“With this deal we will be a part of the leading company in 3D-printing in
metals. Because of our long term close cooperation with Arcam we know that this
deal will give us a very good platform for continued growth in the 3D-printing
industry. Being part of a larger group will also help in accelerating growth to
better service the overall metal powder market”, says Jacques Mallette,
President of Raymor Industries and future President of Arcam’s powder business.

The above information has been made public in accordance with the Securities
Market Act and/or the Financial Instruments Trading Act. The information was
published on December 13, 2013.
For further information please contact:
Magnus René, CEO Arcam AB
Tel: +46 31 710 32 00, alt. cell: +46 702 79 89 99 or E-mail:
magnus.rene@arcam.com
Arcam provides a cost-efficient Additive Manufacturing solution for production
of metal components. The technology offers freedom in design combined with
excellent material properties and high productivity. Arcam’s market is global
with customers mainly in the orthopedic and aerospace industries. The company
was founded in 1997 and is listed on NASDAQ OMX Stockholm, Sweden. Head office
and production facilities are located in Mölndal, Sweden. Support offices are
located in the US, UK, Italy and China.

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Arcam AB • Krokslätts Fabriker 27A • SE-431 37 Mölndal, Sweden • 46-31-710 32 00
• www.arcam.com