ExOne Announces Acquisitions

NORTH HUNTINGDON, Pa. (March 6, 2014) – The ExOne Company announced that it acquired two operations to support its strategy to broaden its post-print processing capabilities. David Burns, President and Chief Operating Officer of ExOne commented, “We believe that vertically integrating the processes surrounding additive manufacturing will help to accelerate the adoption cycle for 3-D printing in the industrial market place. These acquisitions represent critical post-print processes that are components of the 3D printing value chain.” With the acquisition of MWT - Gesellschaft für Industrielle Mikrowellentechnik mbH, a supplier of industrial grade microwaves with design and manufacturing experience, ExOne has enhanced its position in the 3-D sand production systems market. Industrial grade microwaves are used for thermally processing certain sand molds or cores that are 3-D printed using binders, such as the more environmentally-benign phenolic binder that requires a drying process. Importantly, microwave technology improves casting quality and reduces production costs for customers in specific industries, such as magnesium parts for aviation and steel alloy parts for hydraulic components. ExOne acquired MWT for approximately $4.8 million in cash as part of the company’s vertical integration strategy. Based in Elz, Germany, MWT designs and manufactures equipment that is currently employed in ExOne’s production service center (PSC) operations. ExOne also plans to offer this technology to customers in future system sales. MWT’s microwave operation will be operationally integrated with the Company’s Augsburg, Germany manufacturing operations. The company also acquired the assets of Machin-A-Mation, a specialty machine shop located in Chesterfield, Mich., for approximately $5 million. Machin-A-Mation’s capabilities fit well within ExOne’s ExCast strategy, which is focused on each element of the additive manufacturing process. The Machin-A-Mation business will remain in its current Michigan location, complementing the Company’s nearby PSC in Troy, Mich. This PSC focuses on advanced 3-D printed cores and molds for the aerospace and shipbuilding industries. In addition, ExOne expects to continue to serve and expand the existing Machin-A-Mation industrial customer base. Mr. Burns continued, “In the manufacture of precision parts, there are several steps to completion. Machin-A-Mation’s specialty precision machining expertise helps us address the finishing requirements for complex parts which are cast from our 3D printed sand molds. The addition of the capabilities of both MWT and Machin-A-Mation enable us to better satisfy the needs of our growing industrial customer base in a more comprehensive manner.” ExOne provides 3-D printing machines and printed products, materials and other services to industrial customers.