The German machine manufacturer agreed to sell its metal AM system business to Lenbach Equity Opportunities (LEO) III Fund, part of the Munich-based DUBAG Group. The new group will be based in Schio, Italy. The Trumpf brand will continue to be used during an interim period and will be phased out when the new company introduces a new brand. The divestiture is part of Trumpf’s strategic focus on its core businesses.
Wohlers View:
A manufacturer of machines and industrial lasers, Trumpf entered the metal AM business in 2014. Until 2021, it operated a joint venture with Sisma, an Italian machine manufacturer specializing in metal AM for medical, dental and jewelry applications. The newly carved out 3D printing business will be based in Schio, the same location where it operated jointly with Sisma for many years.
Trumpf’s entry into AM was based on leveraging the synergies with its laser and machine-building expertise. Its systems are considered high quality solutions for both PBF-LB and DED solutions. Privately-held Trumpf’s decision to divest suggests that the promise of a large AM system business failed to meet initial expectations. Several larger industrial brands that have entered the AM market have encountered similar headwinds as the development of the AM industry, while consistently growing, has not yet reached the scale that larger enterprises generally require to move the needle in their overall business strategy. Similarly, BASF recently exited the AM business—its assets ending up at Stratasys—most likely because of the industry’s failure to scale sufficiently.
The sale of the 3D printing business will hopefully allow the company to thrive as an independent entity with a new brand. The LEO III Fund styles itself as a vehicle for “special situation” transactions, such as corporate carve outs with significant improvement potential. As such, the sale of the 3D printing business is unlikely to be characterized by Trumpf as a success-driven exit. The LEO III fund closed in 2024 after raising €80 million ($93.8 million), with three investments prior to the Trumpf transactions. Based on the company’s announcement indicating that the LEO III fund was the sole acquirer of the business unit, it is fairly safe to assume that, after eleven years in the AM business, the value of the transaction was not the stuff of Trumpf’s dreams. READ
