The sale, subject to closing conditions and adjustments, includes the company’s on-demand manufacturing experts and facilities in Tennessee, Washington, France, Italy and England, according to a news release. The on-demand manufacturing business will be rebranded as Quickparts and offer advanced manufacturing services including additive and subtractive capabilities.
The move will allow 3D Systems to focus on strengthening its position as a market leader in additive manufacturing solutions for growing markets that demand high-reliability products, according to a news release. The company will continue to collaborate with Quickparts to support shared customers after the sale closes.
“We are continuing to aggressively execute our four-phase plan that we announced a year ago to position the company for exciting growth and profitability as the market for industrial-scale additive manufacturing continues to expand,” Jeffrey Graves, 3D Systems president and CEO, said in the release. “The on-demand manufacturing business, with its focus on the rapid production of components using a multitude of digital manufacturing methods, is a solid business that has a very bright future under the stewardship of Trilantic North America.”
In May, 3D Systems announced an 50,000-square-foot expansion of its Colorado facility to increase its health care and industrial application development and production capabilities. In February, the company announced a $13 million, 100-square-foot expansion of its York County operations expected to create 50 jobs. 3D Systems also added metal 3D printing technology to its site in Belgium in support of work it performs for industries including aerospace, defense and automotive.
The company expects the on-demand manufacturing sale to close in the third quarter of 2021.
“Our sole reason for divestiture is to enable our entire focus and investment priorities to be on additive manufacturing, where we play a unique leadership role in enabling industrial-scale AM adoption across a range of exciting end markets,” Graves said. “We will continue to collaborate with the Quickparts business as it relates to additive manufacturing and are confident that, with the focus this brings to both organizations, the future will be bright for all stakeholders.
“With a very strong balance sheet and cash position, proceeds from the sale will be used to further accelerate our investments for growth in our core additive manufacturing capabilities, for which we are seeing rapidly rising demand in new, extraordinary applications ranging from the human body to electric vehicles and space travel.”