June 26 (Bloomberg) -- Stratasys Ltd., a New York-listed maker of printers that create three-dimensional objects, plans acquisitions to expand into devices that use metals.
The company, with headquarters in Minneapolis and Israel, can maintain annual sales growth of about 20 percent without including the effect of purchases, Stratasys Chairman Scott Crump said in an interview in Beijing yesterday.
Stratasys last week said it would buy startup competitor MakerBot Industries LLC for at least $403 million to expand its consumer-product line. The company focuses more on the professional market for 3-D printers used by engineers, designers and manufacturers. Printers from both companies form plastic objects.
“Because there is so much opportunity we also will selectively grow though M&A,” Crump said. “We have an organic project to get Stratasys into additive metal. It’s rational to say that through M&A we want to expand with different technology on a dual path.”
Stratasys rose 1.9 percent to $80.67 yesterday in New York trading. The stock has gained 0.7 percent this year, compared with an 11 percent gain for the Russell 1000 Index.
The industry will expand over the next 12 years to be worth as much as $550 billion, Crump said, citing data from consultants McKinsey & Co.
Stratasys will initially issue 4.76 million of its shares in exchange for MakerBot, according to a statement this month. That will be followed by performance-based payments that could add $201 million to the purchase price, Stratasys said.
Crump didn’t give specific acquisition targets or indicate a time frame when the company might make its next purchase.
“You have to be careful what you acquire because you have to be able to manage it,” Crump said.
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