Following the merger with the SPAC, Essentium will go public with a listing expected to be on Nasdaq
Essentium HSE 280i HT 3D Printer. (Credit: Essentium Inc.)
Essentium, a US-based industrial 3D printing solutions provider, has agreed to merge with blank cheque company Atlantic Coastal Acquisition in a deal that values the combined entity at $974m.
Atlantic Coastal Acquisition is a $345m special purpose acquisition company (SPAC), focused on mobility sector businesses.
Following the merger, Essentium will retain its name and go public with a listing expected to be on Nasdaq under the symbol “ADTV”.
Established in 2013, Essentium manufactures and provides industrial 3D printers, software, materials, and services. The company is said to help manufacturers in bridging the gap between 3D printing and machining.
Its line of high speed extrusion (HSE) 3D printing platforms are claimed to be five to fifteen times faster than the current extrusion additive manufacturing systems.
Essentium’s data capture abilities are said to allow capture of critical parameters in real-time through high-fidelity data streams at a rate that is 14 times on an average faster per variable than conventional additive manufacturing.
Some of the firm’s customers include the US Department of Defense (DoD), Lockheed Martin, and Ford Motor.
Essentium CEO Blake Teipel said: “Essentium is transforming the future landscape of supply chains by delivering truly distributed, sustainable manufacturing and operating solutions within all contexts including the ability to operate successfully in contested logistics environments.
“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.
“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.”
After the merger, Essentium will continue to be steered by its existing management team, which includes the present CEO Teipel.
The transaction includes $345m cash held in trust by Atlantic Coastal along with a fully committed private investment in public equity (PIPE) of more than $40m.
The PIPE investors include BASF, Apeiron, and Atalaya. A contribution of $20m from Atlantic Coastal’s management team is also part of the PIPE.
Atlantic Coastal chairman and CEO Shahraab Ahmad said: “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.
“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.”
The closing of the deal is anticipated to occur around the end of Q1 2022.