GE Pays $1.4 Billion for European 3-D Printing Firms

General Electric Co. said Tuesday it has agreed to acquire two European 3-D printing companies for a combined $1.4 billion, marking a strong push into new ways of making aircraft and other components.

GE will buy Sweden's Arcam AB and Germany's SLM Solutions Group AG in a move that could put pressure on other aircraft components makers including Rolls-Royce Holdings PLC and United Technologies Corp., according to industry observers.

Both Arcam and SLM Solutions manufacture machines that can print metal parts used in aircraft components such as turbines. 3-D printing, or additive manufacturing, that "will drive new levels of productivity for GE including a wide array of additive manufacturing customers, and for the industrial world," GE's Chairman and Chief Executive Jeff Immelt said.

GE said it expects to grow annual revenue at the new additive business to $1 billion by 2020 at attractive returns and expects efficiency gains of $3 billion to $5 billion across the company over the next 10 years.

While Arcam made $68 million in revenue in 2015, SLM's stood at $74 million. GE said it offered 285 Swedish kronor ($33.32) in cash for each Arcam share and €38 ($42.38) in cash for each SLM share.

Write to Eyk Henning at eyk.henning@wsj.com

(END) Dow Jones Newswires

September 06, 2016 04:15 ET (08:15 GMT)

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