Proto Labs, Inc. (NYSE: PRLB), a leading online and technology-enabled
quick-turn manufacturer, has announced today the launch of its additive
manufacturing service through the acquisition of privately held FineLine
Prototyping, Inc. a leading provider of additive manufacturing services.
The addition of additive manufacturing expands Proto Labs services to
address a wider spectrum of need for the product developer. From concept
models, to form and fit testing, to functional testing and short-run
production, no other company can supply a broader range of quick-turn
custom parts with the speed, reliability and consistency of Proto Labs.
FineLine, based in Raleigh, North Carolina, offers high-quality
stereolithography, selective laser sintering and direct metal laser
sintering services to corporate customers in a wide variety of
industries, including medical, aerospace, computer/electronics, consumer
products and industrial machinery, among others. FineLine has a stellar
reputation for delivering high-quality, precision, rapid-prototype
parts, ranging from small, highly-detailed parts to large patterns.
Fine Line generated revenues of approximately $9.7 million in 2013.
Under terms of the agreement, Proto Labs will acquire FineLine for total
consideration of $38 million. Proto Labs will continue to operate the
FineLine facility out of Raleigh, and expects to retain the services of
all key employees, including FineLine principals Rob Connelly and Craig
Goff to lead the global additive manufacturing services. Proto Labs
expects the acquisition of FineLine to be accretive to Proto Labs
earnings per share by the fourth quarter of 2014.
The addition of an additive manufacturing service is highly
complementary to Proto Labs’ existing CNC machining and injection
molding services. Historically, 70% of Proto Labs customers also utilize
an additive manufacturing service in their product development process.
Proto Labs will announce its new additive manufacturing service to its
substantial database of over 300,000 product developers to leverage the
inherent synergy this new service provides.
“We are excited to launch our new additive manufacturing service,” said
Vicki Holt, Proto Labs President and CEO. “The FineLine acquisition is
the first step in building this new service. We will look to expand our
additive manufacturing capabilities in the US, as well as globally,
through both organic growth and potential new acquisitions. Our
customers have been asking us to provide additive manufacturing services
for quite some time, and now we can address that need. We’re accepting
orders starting today.”
Piper Jaffray & Co. acted as financial advisors to Proto Labs and Faegre
Baker Daniels LLP acted as legal advisors to Proto Labs.
Conference Call
The company has scheduled a conference call to discuss these
developments today, April 24, 2014 at 8:30 a.m. ET. To access the live
call, please dial 866-825-1709 or outside the U.S. 617-213-8060, at
least five minutes prior to the 8:30 a.m. start time and use participant
code 60779619#. A simultaneous webcast of the call will also be
available on the investor relations section of the company’s website at www.protolabs.com/investors.
An audio replay will be available for 14 days following the call on the
investor relations section of Proto Lab’s website.
About Proto Labs, Inc.
Proto Labs, Inc. is a leading online and technology-enabled quick-turn
manufacturer of custom parts for prototyping and short-run production.
Proto Labs provides “Real Parts, Really Fast” to product developers
worldwide. Proto Labs uses computer numerical control (CNC) machining,
injection molding, and additive manufacturing to manufacture custom
parts for our customers. For more information, visit www.protolabs.com.
Copyright Business Wire 2014