Tokyo The Japanese camera manufacturer Nikon wants to take over the German 3D printer manufacturer SLM Solutions for 622 million euros. The Tokyo group offers 20 euros per share and thus 75 percent more than the closing price on Thursday, as both companies announced on Friday. There is also an offer for the convertible bonds issued by SLM.
According to Nikon, it has already secured around 61 percent of the shares. Major shareholders support the offer, including company founder Hans-Joachim Ihde and US hedge fund Elliott Management. The management board and supervisory board of SLM are also behind the transaction, the companies said.
SLM is one of the leading manufacturers of 3D printers for metals. Last year, the machine builder from Lübeck generated sales of 75 million euros. The company’s share price rose as much as 74 percent on Friday in response to the announcement.
Nikon already offers products for additive manufacturing, but is now expanding its portfolio and customer base. The merger is essential for growth in the digital manufacturing business, said Nikon CEO Toshikazu Umatate. “3D printing based on metal will revolutionize industrial mass production.”
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SLM, on the other hand, should find it easier to serve large customers as part of a global group – especially since Nikon has experience with the delivery of complex production technology, as it is said in industry circles.
3D printing enables highly individual production
With 3D printers, three-dimensional components can be produced in any shape that would otherwise be milled or cast – from tooth crowns to injection nozzles for aircraft engines. SLM relies on so-called laser sintering technology, in which a laser beam is guided through a powder bed of metal particles, which then melt, bond and solidify.
Because of the long production times compared to classic manufacturing, additive manufacturing is particularly interesting for components that are highly customized and manufactured in small quantities.
In addition, 3D printing enables the production of shapes that cannot be produced using conventional methods – for example curved drill holes or hollow structures that save material.
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“This technology enables our customers to manufacture highly complex parts, shorten production cycles and reduce CO2 emissions, energy costs and scrap rates,” said Nikon CEO Toshikazu Umatate. “With the acquisition of SLM, Nikon is taking an important step towards our Vision 2030.”
Nikon, known abroad primarily for its cameras, produces optical products of all kinds – the most important profit generators are lithographic systems for the chip industry and optoelectronic products. In the future, however, the group wants to position itself more as a solution provider. In addition to additive manufacturing, the business areas are energy technology, health/pharmaceuticals and entertainment.
No breakup of SLM
It is the second takeover attempt within a few years. In 2016, General Electric offered 683 million euros for SLM, but failed to meet the minimum acceptance rate after Elliot Management did not offer its shares. According to information from financial circles, the activist investor with its founder Paul Singer has invested 80 to 90 million euros. It is said that he is now selling his stake at a profit.
If the deal goes through this time, SLM could go public. As the new owner, Nikon will subscribe to a capital increase of ten percent at the machine builder and make a takeover offer to the remaining shareholders, which is not linked to a minimum acceptance threshold, the statement said. If the group secures enough shares, it will take the 3D printing specialist off the stock exchange.
The employees do not initially have to fear that SLM will be broken up. Nikon has promised in the investment agreement that the current management team will continue to lead the 3D printing specialist and implement its strategy. The group also announced that it would secure the future of the SLM workforce, the operational structures such as the works councils and the SLM headquarters in Lübeck.
There are already several role models in Japan for Nikon’s involvement in Germany. For example, TDK took over Epcos AG, and the mechanical engineering company Mori Seiki merged with Gildemeister to form DMG Mori. Nikon adopts a feature that distinguishes many Japanese-German cooperations: the relatively gentle handling of the new partner.
More: The end of an era: Nikon no longer develops SLR cameras.