ARC Group Worldwide Announces the Acquisition of Advance Tooling Concepts and Thixoforming

ARC Group Worldwide Announces the Acquisition of Advance Tooling Concepts and

- Transactions Further Expand ARC's Strategic Capabilities, Uniquely
Positioning the Company as a 'One-Stop Shop' for its Customers' Advanced
Manufacturing and 3D Printing Needs

- Significantly Accelerates ARC Customers' 'Time to Market' by Expanding Key
Tooling Capabilities and Capacity

- Related Refinancing Expands Company's Borrowing Capacity and Dry Powder for
Further Acquisitions

PR Newswire

DELAND, Fla., April 8, 2014

DELAND, Fla., April 8, 2014 /PRNewswire/ --ARC Group Worldwide, Inc. (NASDAQ:
ARCW), a leading global provider of advanced manufacturing and 3D printing
solutions, today announced it has closed on the acquisition of two companies,
Advance Tooling Concepts ("ATC") and Thixoforming LLC ("Thixoforming"). ATC
is one of the industry's leading plastic injection molders, offering complete,
turnkey plastic injection molding capabilities, as well as fully-staffed and
equipped in-house molding and tooling expertise to customers in high growth
markets including the medical device, electronic, consumer, and defense
industries. Thixoforming is a leading provider of magnesium injection
molding, producing complex, high-density injection molding components from
magnesium alloys.

With the addition of ATC and Thixoforming, ARC has materially strengthened its
leading suite of advanced manufacturing, 3D printing, and associated tooling
capabilities. ARC's new tooling, plastic injection molding, and magnesium
injection molding capabilities further accelerate the adoption of ARC's
advanced manufacturing and 3D printing services, as ARC aims to become a
holistic solution provider for its customer base. Further, both ATC and
Thixoforming provide ARC with significant new customer bases, enabling
cross-selling opportunities across the full suite of ARC products and

ATC, founded in Longmont, CO in 1999, is a leader in high quality plastic
injection molding and specialized tool making, offering a wide variety of
products and services including a state-of-the-art tool room, automated
molding operations, and a Class 100,000 medical clean room. The company
offers a highly flexible product portfolio that is customized for its
customers' unique needs, with products varying from prototype parts through
low- to high-volume production. Because ATC is currently a top supplier to
ARC for metal injection molding tooling, the acquisition will reduce ARC
tooling lead times and costs through vertical integration and will shorten the
'time to market' for ARC customers. ATC generated revenues of more than $17
million in 2013 and is ISO 9001:2008 and ISO 13485 certified.

Thixoforming, founded in 1997, is located adjacent to ARC's Colorado metal
injection molding business, Advanced Forming Technology ("AFT"). Thixoforming
is a leader in magnesium injection molding. Thixoforming's capabilities
combine the design and processing flexibility of plastic injection molding
with the strength of high-pressure diecasting. Thixoforming's process
produces complex shaped components with high dimensional precision, fine
detail, and overall light weight. Thixoforming further rounds out ARC's
injection molding suite of services and adds further capacity to the Company's
leading position in the injection molding industry. Similar to ATC,
Thixoforming also adds an additional customer base for ARC's 3DMT division to
which it can offer rapid prototyping and short run production services.

ARC acquired ATC for $24 million, in an all-cash transaction. Terms of the
Thixoforming acquisition were not disclosed. Brean Capital, LLC acted as
ARC's exclusive financial advisor.

"ARC's acquisition of ATC and Thixoforming provide a strategic fit within our
calculated growth plan. The companies add key capabilities, and accelerate
our goal of being a holistic solutions provider for our customer base – from
product development, to prototyping, to low- to high-volume production.
Further, in-house tooling enables ARC to reduce its lead time, and help our
customers get to market quicker, a key focus of our strategy," said Jason T.
Young, Chairman and CEO of ARC. "On a combined basis, these acquisitions add
meaningful cash flow to ARC, and we expect them to be immediately accretive to
our earnings. They also bring a diverse, loyal customer base that is expected
to provide material cross-selling opportunities for both our advanced
manufacturing and 3D printing services. We continue to evaluate a number of
external growth opportunities, while at the same time developing internal
growth channels, including our online instant quoting software currently under

Closing of New Senior Secured Credit Facilities

In connection with these acquisitions, ARC also announced today that it has
entered into a Credit Agreement with RBS Citizens, N.A. as Administrative
Agent and Collateral Agent, Capital One, National Association as Syndication
Agent, and the lenders party thereto, providing for $90 million in new senior
secured credit facilities, comprised of a $20 million senior secured revolving
credit facility, a $45 million senior secured term loan A facility, and a $25
million senior secured delayed draw term loan facility. The net proceeds from
these facilities were and will be used to finance the transactions described
herein, to repay amounts outstanding under the Company's First Amended and
Restated Loan Agreement with TD Bank, N.A., as Administrative Agent, and to
repay the Company's Unsecured Subordinated Convertible Promissory Note (the
"Subordinated Note"), to pay related fees and expenses, and for general
corporate purposes. The Subordinated Notes were redeemed for $15.6 million, a
$2.0 million discount to the Subordinated Note's face value of $17.6 million.

"Our new streamlined capital structure maintains our low cost of capital,
simplifies our balance sheet, and leaves us with meaningful dry powder to
execute further strategic acquisitions. Similar to the announced
acquisitions, our current pipeline of potential acquisitions remains robust.
We remain committed to complementing our organic growth with strategic,
disciplined acquisitions that serve to further enhance and broaden our
capabilities as the one-stop shop for our advanced manufacturing and 3D
printing customers," commented Drew M. Kelley, CFO of ARC. "Overall, given
our strong organic cash flow and the similar cash flow generating capabilities
of these acquisitions, we remain well positioned to continue to invest in both
our existing businesses and acquisitions, while at the same time deleveraging
our balance sheet."

Investor Conference Call

A conference call to discuss the acquisitions is scheduled for Tuesday, April
8, 2014 at 4:30 p.m. Eastern Time. To participate by phone, the U.S. dial-in
number is 888-395-3227 and the international dial-in number is 719-457-2628.
Please reference conference ID# 8580186. Participants are advised to dial
into the call at least 10 minutes prior to the call start time to register. A
transcript of the conference call will be available on the ARC website
beginning two days following the call.

About ARC Group Worldwide, Inc.

ARC Group Worldwide is a diversified, global advanced manufacturing company,
as well as a world leader in MIM. ARC was founded in 1987 and has a long
history as a technology innovator in manufacturing. ARC has significant
expertise in lean manufacturing and utilizes cutting edge technology including
robotics, automation, and 3D printing. ARC's mission is to bring innovation
and technology to manufacturing. ARC's core manufacturing businesses are in
precision components, 3D printing, flanges, fittings, and wireless technology,
through its operating subsidiaries,,,,,,, and For more information about ARC Group Worldwide, please

About Advance Tooling Concepts

Advance Tooling Concepts was founded in 1999 and is one of the industry's
leading plastic injection molding and injection mold manufacturers. ATC
supplies customers in a range of industries with high quality, high precision
plastic injection molded parts, specializing in designing and building robust
injection molds in-house. For more information about Advance Tooling
Concepts, please visit

About Thixoforming

Thixoforming is based in Longmont, CO and is a leading provider of magnesium
injection molding. Thixoforming produces high density, complex injection
molding components from magnesium alloys. Thixoforming combines the design
and processing flexibility of plastic injection molding with the strength
produced by high-pressure diecasting, however, Thixoforming produces
components with greater detail, improved metallurgical structure and tolerance
capability. For more information about Thixoforming, please visit


This press release may contain "forward-looking" statements as defined in the
Private Securities Litigation Reform Act of 1995, which are based on ARC's
current expectations, estimates and projections about future events. These
include, but are not limited to, statements, if any, regarding business plans,
pro-forma statements and financial projections, ARC's ability to expand its
services and realize growth. These statements are not historical facts or
guarantees of future performance, events or results. Such statements involve
potential risks and uncertainties, and the general effects of financial,
economic, and regulatory conditions affecting our industries. Accordingly,
actual results may differ materially. ARC does not have any obligation to
publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise. For additional factors that
may affect future results, please see filings made by ARC with the Securities
and Exchange Commission ("SEC"), including its Form 10-K for the fiscal year
ended June 30, 2013 and Form 10-Q for the period ended December 29, 2013, as
well as current reports on Form 8-K filed from time-to-time with the SEC.

CONTACT: Drew M. Kelley
PHONE: (303) 467-5236

SOURCE ARC Group Worldwide, Inc.

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