The addition of Kecy’s precision metal stamping capabilities to ARC’s portfolio of advanced
manufacturing and 3D printing services further expands ARC’s holistic solution approach. Further, Kecy
provides ARC with new customers and capabilities, enabling cross-selling opportunities across the full
suite of ARC products and services.
ARC acquired the ISO 9001:2000 certified company’s business for $26 million, in an all-cash transaction.
Kecy generated revenues in excess of $26 million during the 2013 calendar year. Pro forma for the
Acquisition, together with ATC and Thixoforming acquisitions, ARC’s calendar year 2013 revenue and adjusted EBITDA was greater than $120 million and $24 million, respectively.
Kecy, founded in Hudson, MI in 1988, became a leader in high quality, precision metal stamping with a focus on continuous improvement and innovation. ARC will operate the Kecy business out of a modern 84,000 square foot facility with technologically advanced manufacturing and die-making equipment.
ARC will continue to offer Kecy’s highly flexible product portfolio that is customized for customers’
unique needs, with metal stamping capabilities ranging from prototype parts through low- to high-volume production.
"Given ARC’s leading position in metal injection molding and our focus on metal 3D printing, the Acquisition of Kecy’s business is a natural strategic fit to further bolster our metalworking capabilities.
We see considerable metal stamping applications in our existing customer base, and are excited to bring these capabilities in-house, to offer a more holistic solution to our clients. Further, having been the first supplier to Kecy of metal 3D printed prototypes, we see a compelling opportunity to bring this exciting new technology to their customer base to further differentiate our combined offering and shorten the ‘speed-to-market’. Kecy’s utilization of advanced technologies, such as automation and robotics, illustrates our conviction that manufacturing is returning to the United States. Further, Kecy is a promising example of how ARC can accelerate technology adoption, by bringing additional capabilities, such as 3D printing and our proprietary online quoting software to customers," said Jason T. Young,
Chairman and CEO of ARC. "The acquisition of Kecy’s business should add meaningful cash flow to
ARC, and we expect it to be immediately accretive to our earnings. The Acquisition is also a good
example of our ongoing overall acquisition strategy, which is to buy strategic companies at prudent
multiples of cash flow, in order to increase our customer base and provide material cross-selling
opportunities for our 3D printing and other advanced manufacturing capabilities. Being our customer’s full solution provider today will enable us to transition them to new manufacturing technologies over time, as 3D printing and other advanced processes begin to take market share from legacy forms of fabrication.”