SLM Solutions: Takeover offer of GE Germany Holdings AG lapses

• Minimum acceptance ratio of 75% of SLM shares outstanding not reached
• Management and Supervisory boards of SLM Solutions Group had backed takeover attempt

GE Germany Holdings AG, an indirect wholly-owned subsidiary of GE Aviation and part of the General Electric (GE) Group, had published a takeover offer on September 26, 2016 for all outstanding shares of SLM Solutions Group AG. The acceptance period expired on October 24, 2016, 24:00 hours (local time: Frankfurt am Main). With the failure to reach the minimum acceptance threshold of 75% of SLM shares outstanding, one of the completion conditions failed to be met and the offer then lapsed.

Dr. Markus Rechlin, CEO of SLM Solutions Group AG, comments on the outcome of the takeover attempt: "Being part of the GE Group would have given us the opportunity to accelerate on our growth track. GE had made serious and credible commitments to expand our locations and distribution network. In our view, a successful offer would not only have been in the interest of GE but also in the interest of our company, our employees and our shareholders." The Management and Supervisory boards in their joint opinion had unanimously recommended acceptance of the offer. In the final instance, however, acceptance of the offer was subject to each SLM shareholder's individual decision.

The SLM Solutions Group is still going to pursue its strategy of further developing itself into an integrated system provider in the additive manufacturing area. To this end, SLM joined forces with Austrian company CADS GmbH and had already founded a company for the development of special software for the design and construction requirements of selective laser melting in February 2016. In July 2016, 3D Metal Powder GmbH was formed together with the main shareholder of TLS Spezialpulver. This company will advance the development, production and processing of special metallic powders. The plan is to initially create manufacturing capacity to produce 100 tonnes of aluminium powder per year.

"We have shown in the past that SLM Solutions in its current independent structure is well positioned – especially with the technology we have developed and the strategy we are pursuing. However, the takeover offer and its course have caused increased uncertainty in the market for additive manufacturing and for our customers and employees," is how Uwe Bögershausen, CFO of SLM Solutions Group AG, assesses the situation. In the view of the company, the annual targets for the performance indicators revenue and adjusted EBITDA can still be achieved and will depend to a high degree on the results of the fourth quarter with the important trade fair formnext in Frankfurt, as in the previous year.