Sweden-based Arcam said it will be purchasing metal powders manufacturer AP&C from Raymor Industries. The deal would be worth CA$ 35 million, which will be paid through a combination of upfront cash and installments. Upon closing of the deal, CA$20 million will be paid in cash while the remainder will be paid in two installments in 2015 and 2016 after meeting set targets. The acquisition is set to be completed in the first quarter of next year.

Arcam is a provider of cost-efficient Additive Manufacturing solution to produce metal components for customers, primarily in the orthopedic and aerospace industries. In a statement, Arcam said its technology offers freedom in design and combines high productivity and excellent material properties. The company was established in 1997.

Meanwhile, AP&C manufactures metal powders of high quality and has been supplying Arcam with titanium powders, a significant part of Arcam's offerings, for seven years. Because of this acquisition, Arcam now has access to quality titanium powder for the rapidly growing business of its customers.

AP&C utilizes proprietary technology known as Plasma Atomization. The technology manufactures metal powders that will generate titanium alloy powder as its biggest product. A substantial portion of the sales of AP&C is made from the 3D-printing industry. However, it also serves other markets like that of Metal Injection Molding and spray coating powders, among others. Both Arcam and AP&C plan to grow the powder business and further Plasma Atomization technology, the statement said.

For 2013, a revenue of CA$6.5 million is expected to be generated by the AP&C division and an EBITDA or earnings before interest, taxes, depreciation and amortization of CA$1.5 million, the statement said. Arcam sees the acquisition as having a positive effect of its earnings per share next year.

AP&C will become an Arcam subsidiary and will continue to operate with the existing management team, the statement added. AP&C currently has a workforce of 29 employees.