In a big growth, voxeljet AG (Nasdaq: VJET), seemingly the one producer of large-scale sand 3D printers, introduced a proper evaluate course of to discover varied strategic options for the corporate. The evaluate might be overseen by its Administration Board and the Supervisory Board and will doubtlessly result in substantial modifications, together with mergers, investments, or joint ventures.

As its monetary advisor, the corporate has enlisted the experience of BNP Paribas Securities Corp, the brokerage subsidiary of one of many largest banks on the earth, BNP Paribas of France. In the meantime, Hogan Lovells Worldwide LLP as authorized counsel for this endeavor. The vary of potentialities is broad, together with investments, mergers and acquisitions, joint ventures, and strategic partnerships amongst others. Nonetheless, the corporate has said that there is no such thing as a definitive timetable for this evaluate, neither is there any assure that the method will end in any type of transaction or strategic change.

Rocky Street

The announcement comes at a time when the 3D printing business is in present process essential modifications. The worldwide financial scenario has led smaller corporations to endure financially, opening up the chance for acquisitions by bigger firms. voxeljet occurs to characterize the previous, however it has suffered monetary difficulties earlier than the COVID-19 pandemic.

In August 2019, voxeljet acquired a discover from the New York Inventory Change (NYSE) as a result of the truth that the corporate’s common world market capitalization over a 30-day buying and selling interval fell beneath $50 million. This was adopted in Could 2020 with one other non-compliance discover when its common closing share worth fell beneath $1.00 for 30 consecutive days. Lastly, in August 2020, the corporate introduced its resolution to voluntarily switch from the NYSE to the NASDAQ.

The corporate’s Q2 2023 monetary report confirmed a modest income improve of two.2%, reaching €6.8 million; nonetheless, its web loss doubled to €3.6 million. The techniques phase, targeted on 3D printer growth and gross sales, demonstrated robust efficiency with an 11.5% improve in income, attributed to the sale of three new 3D printers. However, the companies phase noticed an 8.7% decline, significantly in its German and Chinese language service facilities.

General, voxeljet seems to be in a precarious monetary scenario based mostly on its 2022 numbers. The agency’s persistent detrimental working and free money flows pose challenges for the corporate’s sustainability. Nonetheless, the optimistic investing money circulation and a comparatively secure finish money place could present some cushion. A good portion of the financing money circulation goes into debt compensation, which could possibly be a technique to cut back long-term liabilities. Nonetheless, its declining end-of-year money place from 2021 means it wants recent capital to take care of its ongoing actions.

Tech Developments and Partnerships

Regardless of the wrestle its inventory has confronted, the corporate continued to innovate and earn high-profile clients. In 2015, it introduced a partnership with inkjet printer head producer Xaar to develop high-speed sintering (HSS) know-how. Since then, voxeljet has demonstrated various high-volume functions with the method, uniquely benefited by the German firm’s experience in large binder jetting machines.

On-demand printing of TPU elements through HSS. Picture courtesy of voxeljet.

Maybe extra importantly, voxeljet additionally noticed its know-how utilized by various distinguished auto firms, a pattern that has elevated prior to now 12 months alone. By means of its U.S. buyer, Tooling & Gear Worldwide (TEI), voxeljet’s VX4000, the world’s largest sand 3D printer, is getting used to supply sand casting elements by Normal Motors and BMW for vehicle manufacturing. It was additionally revealed that Tesla was utilizing sand 3D printing to solid giant advanced automotive elements, presumably counting on voxljet’s know-how given the scale of the sand molds. Within the case of BMW, that is being carried out in an automatic method.

3D printed sand cores made utilizing voxeljet know-how.

All of that is to say that voxeljet is a worthwhile firm, regardless of its monetary hiccups. With that in thoughts, it appears seemingly that agency will proceed onward in some kind or one other. The query is in what kind.

Consumers, Mergers, and Joint Ventures

Given the sheer dimension of the tools produced by the agency, it’s tough for a smaller enterprise to fabricate on the scale wanted by giant industrial shoppers like BMW, GM, and Tesla. For that cause, it’s been argued that consolidation is important for the know-how to scale. With that in thoughts, there are many potential companions or consumers for a corporation like voxeljet.

We’d first contemplate the number of companies concerned in binder jetting. Till this summer season, probably the most pure match would have appeared to be Desktop Metallic (NYSE: DM), because it acquired ExOne, previously part of voxeljet’s predecessor firm, Generis GmbH. Nonetheless, Desktop is at present within the midst of a potential merger with polymer 3D printing stalwart Stratasys (Nasdaq: SSYS).

It’s unlikely that the mixed enterprise would instantly be capable to buy voxeljet, however it will be a complementary acquisition. In spite of everything, Xaar’s 3D printing division was in the end purchased by Stratasys and drives voxeljet’s HSS, a variation of Stratasys’s personal selective absorption fusion course of. In 2020, voxeljet additionally fashioned a partnership with supplies firm Covestro so as to add thermoplastic polyurethane (TPU) to its HSS platform. Covestro was then purchased by Stratasys in 2022.

With an general construct house quantity of 4x2x1 meters, the VX4000 is the most important industrial printer on the earth. Picture courtesy of voxeljet.

There’s additionally HP (NYSE: HPQ) and GE Additive (NYSE: GE), each of whom manufacture binder jetting machines. A voxeljet buy would make sense for every. HSS would permit HP to go huge with its Multi Jet Fusion (MJF) polymer 3D printing know-how. This was a plan it alluded to when MJF was unveiled within the final decade, as HP produces large-scale 2D printers. Sand 3D printing enhances the enterprise’s steel binder jetting platform.

For GE, who makes the business’s greatest steel binder jet system, it might enter into sand 3D printing, which might serve any variety of shoppers. Particularly, GE Renewable is working with voxeljet to develop an excellent greater sand 3D printer to be used in wind turbine manufacturing. It additionally simply acquired substantial funding from the U.S. Division of Vitality.

Different potentialities embrace the opposite corporations concerned within the merger drama associated to Stratasys: 3D Methods (NYSE: DDD) and Nano Dimension (Nasdaq: NNDM). Each companies have acquired distinctive firms that don’t at all times make quick sense upon a superficial examination.

Then, there’s the likelihood that a purchase order may happen from outdoors of the business, as was just lately seen with Align Applied sciences and Cubicure. Any considered one of its giant clients might purchase voxeljet to vertically combine the know-how and stop opponents from leveraging some great benefits of large sand 3D printing. The truth that GM, BMW, and Tesla all had tales that includes using the know-how printed this 12 months might recommend that elevated publicity was a negotiating tactic to extend the worth of the agency in negotiations.

A rendering of BMW’s sand core manufacturing line.

Consumers from Asia

As a result of it’s almost not possible to actually predict what’s going to occur with out being inside the boardrooms the place discussions are going down, it’s at all times obligatory to contemplate a shocking component. Chinese language and Indian firms have been buying necessary producers from the West.

In our sector, ChemChina bought German injection molding large KraussMaffei in 2016. Auto agency Daimler and robotics firm Kuka, in addition to aerospace enterprise Cotesa, are all Chinese language-owned German enterprises. Elmos Semiconductor in Germany tried to promote a chip manufacturing facility to a Chinese language agency as only one amongst various failed acquisitions as a result of worldwide politics.

As an rising world energy, India has been steadily rising in standing economically. Indicative of this was the acquisition of the Jaguar Land Rover by India’s Tata Motors in 2008. Extra just lately, a German adhesives enterprise was offered to a subsidiary of the Murugappa group. In 2021, the Mahindra Group bought a German tech consulting enterprise as a part of a string of buyouts, marking simply considered one of a number of German companies purchased by Indian corporations that 12 months. In 2022, Reliance Industries, the nation’s most dear enterprise and owned by one of many world’s richest males, introduced that it will purchase German agency Metro AG.

As voxeljet reported that its Asian companies flagged in Q2 2023, there’s a chance that an Asian purchaser might have been ready to carry the corporate in-house. PeeKay Metal Castings (P) Restricted, as an illustration, is one voxeljet buyer that homes a VX4000 at its technical innovation middle.

At this level within the business, not one of the above would shock me. With restricted data of the Asian market, it will be harder to take a guess as to who may be a super purchaser or accomplice. Relying on what area you find Stratasys, I do consider there’s a chance there. In Europe and North America, I might lean towards GE or BMW, however am at an general loss as to a extra exact prediction.

By the way, BNP might be taking part on the upcoming Additive Manufacturing Methods 2024 occasion in New York, February 6-8, 2024. On the occasion, Christian Hartenberger, who leads the corporate’s Industrial Know-how and Aerospace/Protection Funding Banking division, might be on the “Printing Cash: M&A and Public Markets” panel, so he might be able to inform us about no matter developments have occurred with voxeljet by then.