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- 1 December 2021 19:12
Titomic acquires leading European 3D printing technology company Dycomet
Titomic Limited (ASX:TTT) has acquired leading European cold spray (3D printing) technology company, Dycomet Europe B.V. (Dycomet).
Dycomet is a Netherlands-based company offering low and medium pressure cold spray technology solutions to various industries since 2006. In 2016 Dycomet also added high pressure cold spray solutions to their portfolio, which will provide Titomic’s European customers with local support and capability.
Dycomet’s portfolio includes turn-key cold spray solutions, research and development services via an in-house laboratory, software development and the provision of servicing, spare parts and consumables for its systems. Its clients include household brands such as Rolls-Royce, Mercedes, Airbus, Siemens, VW, and several leading universities. Dycomet is well aligned with Titomic’s strategic approach targeting markets such as the aviation and automotive industry.
Herbert Koeck, Chief Executive of Titomic, said, “The acquisition of Dycomet is a significant step in Titomic’s strategic pathway to being a global company. We are excited to welcome Dycomet onboard and look forward to working with Klaas and his team on the many exciting opportunities that this acquisition presents. While Titomic focuses on high-pressure applications, Dycomet services the soft-end low and medium-pressure market. With our complementary machinery and product portfolio, the combined expertise now available to the Company will further accelerate the Company’s growth into new markets and provide current customers with a broader product offering.”
The transaction will provide Titomic with a base in Europe, giving it exceptional global access together with its Australian Headquarters and Titomic USA. The acquisition will be immediately revenue accretive for Titomic with a healthy pipeline of customer orders in Europe. Several synergies that will be immediately realised between the businesses, include additions to Titomic’s comprehensive product portfolio, wider product offers to current customers, use of complementary machinery sets from both sides, Titomic’s ability to service and maintain additional industry machinery in Europe and providing technical and sales functions for the Company in the region.
Titomic will acquire all the issued shares in Dycomet and pay cash consideration to the vendors of €1.3 million, with €1 million being paid on completion and two equal deferred payments of €150,000 being paid 18 months and 36 months after completion. In addition, the vendors will be issued 1.5 million ordinary shares in Titomic in three equal tranches on the first, second and third anniversaries of completion.
Dycomet’s Founder and Chief Executive, Klaas Rozema, will step into the new role of General Manager of Titomic Europe. Klaas brings a wealth of experience in cold spray technology, having spent the past 13 years building Dycomet to now hold a leading position in the European market.
Klaas Rozema, Chief Executive of Dycomet, said, “I am delighted that Dycomet has been acquired by a new owner who understands our industry. Titomic is an excellent complementary fit with our current product set and expertise and can support the next phase of growth, offering a wealth of opportunities for our team. I will continue to lead the business in Europe, and I look forward to working with Herbert to bring the two companies together and ensure the synergies between the two businesses are fully harnessed.”