ARC Group Acquire Kecy Corp; Further Cement Place in 3DP Landscape
The Engineer posted on June 25, 2014 |
3D printing, ARC group, Kecy corp, acquisition, metal stamping,ARC Group Worldwide, a leading global provider of advanced manufacturing and 3D printing solutions, today announced it has signed a definitive agreement for acquisition of the business of Kecy Corporation (“Kecy”). Kecy is one of the industry’s leading precision metal stamping companies, utilizing advanced manufacturing,robotics, automation, and die-making equipment. The company also offers value-added secondary processing with an experienced design and production staff. The transaction is structured as an acquisition of substantially all of the assets of Kecy (the “Acquisition”). The closing of the Kecy Acquisition is expected to occur on June 25, 2014. 

The addition of Kecy’s precision metal stamping capabilities to ARC’s portfolio of advanced 
manufacturing and 3D printing services further expands ARC’s holistic solution approach. Further, Kecy 
provides ARC with new customers and capabilities, enabling cross-selling opportunities across the full 
suite of ARC products and services. 
ARC acquired the ISO 9001:2000 certified company’s business for $26 million, in an all-cash transaction. 
Kecy generated revenues in excess of $26 million during the 2013 calendar year. Pro forma for the 
Acquisition, together with ATC and Thixoforming acquisitions, ARC’s calendar year 2013 revenue and adjusted EBITDA was greater than $120 million and $24 million, respectively. 

Kecy, founded in Hudson, MI in 1988, became a leader in high quality, precision metal stamping with a focus on continuous improvement and innovation. ARC will operate the Kecy business out of a modern 84,000 square foot facility with technologically advanced manufacturing and die-making equipment. 

ARC will continue to offer Kecy’s highly flexible product portfolio that is customized for customers’ 
unique needs, with metal stamping capabilities ranging from prototype parts through low- to high-volume production. 

"Given ARC’s leading position in metal injection molding and our focus on metal 3D printing, the  Acquisition of Kecy’s business is a natural strategic fit to further bolster our metalworking capabilities. 

We see considerable metal stamping applications in our existing customer base, and are excited to bring  these capabilities in-house, to offer a more holistic solution to our clients. Further, having been the first supplier to Kecy of metal 3D printed prototypes, we see a compelling opportunity to bring this exciting new technology to their customer base to further differentiate our combined offering and shorten the ‘speed-to-market’. Kecy’s utilization of advanced technologies, such as automation and robotics, illustrates our conviction that manufacturing is returning to the United States. Further, Kecy is a promising example of how ARC can accelerate technology adoption, by bringing additional capabilities, such as 3D printing and our proprietary online quoting software to customers," said Jason T. Young, 

Chairman and CEO of ARC. "The acquisition of Kecy’s business should add meaningful cash flow to 
ARC, and we expect it to be immediately accretive to our earnings. The Acquisition is also a good 
example of our ongoing overall acquisition strategy, which is to buy strategic companies at prudent 
multiples of cash flow, in order to increase our customer base and provide material cross-selling 
opportunities for our 3D printing and other advanced manufacturing capabilities. Being our customer’s full solution provider today will enable us to transition them to new manufacturing technologies over time, as 3D printing and other advanced processes begin to take market share from legacy forms of fabrication.” 

Source: ARC Group

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