Guide: 2021 is approaching the last month, and there will be another one3D printingThe company is ready to go public on the backdoor!
industry3D printingMachine manufacturer Essentium plans to go public through a merger with Special Purpose Acquisition Corporation (SPAC) Atlantic Coastal Acquisition. It is understood that the transaction will be completed by the end of the first quarter of 2022. The two companies will merge into a joint venture worth approximately US$974 million (approximately RMB 6.211 billion) and will be listed on the Nasdaq under the stock code “ADTV “. The transaction is expected to raise US$346 million (approximately RMB 2.321 billion) for the company, and these proceeds will be mainly used for organic growth.
△Double extrusion head3D printingmachine
High-speed extrusion technology
Essentium launched its flagship high-speed extrusion (HSE) technology in 2018, which aims to solve the speed and strength shortcomings of traditional FFF systems. The company claims that HSE printers are 5-15 times faster than ordinary machines, and are also equipped with a built-in camera, which can provide a faster data stream, allowing users to monitor the printing process with high precision.In the past three years, Essentium has steadily expanded its platform and cooperated withBASFandmaterialiseCooperate to launch open high-speed3D printingModel.WithLEHVOSSCo-manufacture new PEEK and nylon series, and a batch of new ones withaviationaerospace, Electronics and defense potential of high-performance filaments.
△HSE 280i HT. Photo courtesy of Essentium
In 2021, the company also expanded its product portfolio andFormnext 2021 launched HSE 240T, Together with HSE 180 series and HSE 280I HT as the sales focus, to provide efficient and fast production for small and medium-sized enterprises. Essentium regards HSE as one of its main advantages. After the merger of SPAC, the company will increase the funds needed to expand the “distributed production capacity” of the platform.
△Essentium’s HSE 180-S 3D printingmachine. Photo from Essentium.
Essentium CEO Blake Teipel said that the escalating barriers such as trade imbalances and the epidemic are exacerbating the basic deficit in the existing global supply chain model. Essentium is working hard to provide long-term, sustainable solutions for new manufacturing models to face these global challenges.
△Essentium’s HSE 280i HT 3D printingmachine. Image courtesy of Essentium.
Develop metal system
Essentium currently serves the US$209 billion TAM through commercial and critical use cases for global machine tools, fixtures, fixtures and thermoplastic products and related Department of Defense applications.Its customer base includes the U.S. Department of Defense, Lockheed Martin, FordcarCompanies, as well as other aerospace and defense, government, and blue chip industrial customers. Involved in the field of technology, materials and other IP combinations across polymer and metal systems, with more than 150 patents.
△In PEKK3D printingIndustrial parts. Photo courtesy of Essentium
The company also claims to have a management team with a background in materials science and supply chain, able to continue to innovate beyond polymers and composites, includingFlashFuse technology. It is reported that Essentium is currently developing a metal additive manufacturing system that provides unique metallurgy and advanced microstructures for structural integrity applications. Essentium to metal3D printingAnd the new digital manufacturing planinvestIt is expected to create incremental market opportunities for TAM with a total value of US$318 billion.
△FlashFuse technology
$974 million IPO
Atlantic Coastal and Essentium valued the company to be established at $10.00 per share assuming no redemption by shareholders.Whereas Essentium is expected to generate US$212 million (approximately RMB 1.352 billion) by 2023income, This transaction is beneficial to shareholders, because the combined company is expected to be worth 4.6 times the amount. Once the transaction is completed, the shareholders of the two companies will transfer their equity to the new company. Essentium supporters will retain 64% of the shares, while Atlantic Coastal will inherit 36% of the shares.
△Essentium
For shareholders seeking redemption rights, the company and Atalaya subsidiary ACM ARRT VII C LLC have agreed to a joint tender offer. Subject to restrictions, the agreement will allow Atalaya to purchase the first 10 million shares of the tender, while Atlantic Coastal commits to purchase the remaining shares. If the transaction is terminated within the next two years, Atlantic Coastal also agreed to purchase the shares acquired by Atalaya at the redemption price, increasing the stability of the transaction.
△AtlanticCoastal
In terms of funding, assuming there are no redemptions or fees associated with the closing of the transaction, SPAC is expected to bring up to 346 million US dollars in net income for the combined company. Although Atlantic Coastal has US$346 million in assets on its balance sheet, part of the funds will also be raised through a US$40 million PIPE, backed by Atalaya, BASF, Apeiron, and investor Christian Angermayer.
△Blake Teipel, co-founder and CEO of Essentium. Image courtesy of Essentium.
Overall, this SPAC may still require shareholder approval, but the boards of directors of the two companies have unanimously approved the transaction. And according to AtlanticCoastal CEO Shahraab Ahmad, the sustainability advantages of Essentium’s HSE technology can make it an ideal partner to achieve ecological goals.
The trend of SPAC listing is rising again
In the past 18 months, a large number of3D printingThe company went public through SPAC and raised a lot of funds. Before Essentium, Fast Radius was the latest one to announce its listing. Previously, it announced its plan to go public through a US$995 million SPAC in July 2021 (for details, please refer to:Another company goes public! Fast Radius will merge with ECP to list on Nasdaq, valued at US$1 billion).
△FastRadius
Xometry also recently decided to go public, but chose the traditional IPO method (for details, please refer to:3D printingManufacturing Internet platform XOMETRY went public to raise US$252 million, and its stock price soared twice). Despite the lack of SPAC support, the company was still able to raise US$302 million from the transaction, nearly US$50 million higher than the initial expectations.
△The global manufacturing market Xometry has its initial public offering (IPO) on Nasdaq.
Of course, there are also companies that choose not to “follow the trend” and develop step by step.3D printingMachine manufacturerFormlabsSaid that after raising $150 million in May 2021, it is avoiding profit from the SPAC listing trend. According to reports, the company’s CEO Max Lobovsky said at the time that the company was “big enough and mature enough” to go public, but would “take time” to ensure that it was in its best shape before going public.
(Editor in charge: admin)
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