3D printer Essentium to go public after major merger

Texas-based 3D printing company Essentium is to become a public company via a merger agreement with special purpose acquisition firm Atlantic Coastal Acquisition Corp.

The deal has valued Essentium at $974 million (€858.5 million) and is scheduled to be completed in Q1 2022. The combined company will retain the Essentium name and be listed on the Nasdaq stock market in New York. The merger has already been approved by both companies' Board of Directors.

Read more: High-flyers: IE talks to Essentium about its US Air Force contract

In a press release, Essentium added that, following the merger, it aims to expand into additive manufacturing processes using metals and "carve out incremental market opportunities" in the nascent sector, which by some estimates have a Total Available Market of $318 billion (€280 billion).

Existing Essentium shareholders will roll over 100% of their equity into the newly combined company. The company said that once the transaction is completed, these shareholders are expected to hold approximately 64% of the company.

"Fundamental deficits in our existing global supply chain models are being exacerbated by escalating obstacles such as trade imbalances and the global pandemic – all leading to protracted distribution bottlenecks," said Blake Teipel, Essentium CEO, who will remain in his position.

"Today’s announcement represents a major milestone in our efforts to provide long-term, sustainable solutions for a new manufacturing paradigm that can meet these global challenges head-on."

Read more: IE talks to Essentium CEO Blake Teipel

Founded in 2020, Atlantic Coastal Acquisition Corporation describes itself as a "blank-check company newly formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination with one or more businesses."

The company also states that while it does not limit itself to any specific industry or geographic region, it aims to have a mobility focus.

"We launched Atlantic Coastal with an ESG-centric focus and a mandate to partner with a company that will transform the nature of international commerce, and we believe that Essentium, with its potential to change the global supply chain, is exactly that partner," said Shahraab Ahmad, Chairman and Chief Executive Officer of Atlantic Coastal.

"Blake and his experienced team have developed a deep technology moat, a product ecosystem validated by the DoD, and a razor/razor-blade model that delivers significant recurring revenue, supporting gross margin expansion and highly attractive unit economics."

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