CORE Consolidates 3D Printing Industry with Acquisition Spree: Interview with Founder John May12/28/2021
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CORE Consolidates 3D Printing Industry with Acquisition Spree: Interview with Founder John May https://ift.tt/3HliS5s CORE Industrial Partners is a private equity firm in Chicago, made up of experienced investment professionals and former CEOs, with $700 million worth of capital commitments investing in lower middle-market manufacturing, industrial technology, and services businesses in North America. For the last few years, the company has been looking closer at the additive manufacturing (AM) industry, and acquiring AM businesses, such as 3D printing provider Fathom, as new portfolio businesses. Then, some of these portfolio companies go on and purchase other firms, like FATHOM did with injection molding firm Summit and metal AM service provider GPI Prototype & Manufacturing Services LLC. In November, CORE announced the acquisition of three more 3D printing companies—3D printing filament provider 3DXTECH, Triton 3D, which provides accessories and Stratasys-compatible AM materials, and open-source industrial 3D printer provider Gearbox3D—allowing the firm to form a brand new additive manufacturing platform. 3DPrint.com spoke with John May, the Founder and Managing Partner of CORE, to learn more about the company’s long-term strategy in the AM market. He told us that CORE, having “identified the additive manufacturing sector as a thematic vertical of interest,” has made close to 20 acquisitions so far, “many of which have been integrated into the Fathom platform.” 3DPrint.com: Why did you specifically choose to acquire Fathom, 3DXTECH, Triton, and Gearbox3D?
May further explained that the recent investments in 3DXTECH, Triton, and Gearbox3D aligned with CORE’s strategy to build an equipment- and proprietary materials-based additive manufacturing platform.
What’s CORE’s goal with these acquisitions?
Is the company doing a roll-up strategy for 3D printing?
When asked what types of companies CORE is looking to acquire, May answered that its two AM platforms search for targets with “complementary manufacturing capabilities, technology / software, customers, end markets and geographic footprint.”
May explained that the four AM firms it’s acquired in the last few years will not all be integrated together, with Fathom acting as a separate platform than 3DXTECH, Triton, and Gearbox3D; however, these latter three have been incorporated into a single business. Where do you hope to create value?
May explained that CORE hopes “achieve a similar result for 3DXTECH, Triton and Gearbox3D.” Do you want to remain independent, or is the goal to sell this business?
Our Additive Manufacturing Strategies conference, produced together with SmarTech Analysis, is coming up in March of 2022, with 3D Systems as a Diamond Sponsor and Stifel as a Presenting Sponsor. The hybrid event, held both online and in-person in New York City, will feature a total of nine vertical AM topics, including industrial metal 3D printing, automation, new materials, software, 3D printing for the healthcare, dentistry, automotive, aviation, and space industries, bioprinting, and rapid manufacturing. We wanted to know what May had to say about these vertical topics, and how they aligned with CORE’s additive manufacturing investment focus.
In the last month alone, CORE portfolio company CGI Automated Manufacturing, which itself was acquired by CORE in August, announced the acquisition of Precision Metal Fab and Precision Tool & Die, which provides metal cutting and forming solutions, and the acquisition of HealthSpecialty, a full-service contract manufacturer of skin, body, and hair care products, by CORE portfolio company Arizona Natural Resources (ANR). So it doesn’t appear that the firm is slowing down anytime soon. It will be interesting to see which 3D printing company CORE invests in next. Printing via 3DPrint.com | The Voice of 3D Printing / Additive Manufacturing https://3dprint.com December 28, 2021 at 08:03AM
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