GE expands in 3-D printing with $1.4 billion purchases

General Electric is expanding its 3-D printing division.

The industrial giant announced on Tuesday that it would be purchasing Swedish company Arcam AB and Germany-based SLM Solutions for $1.4 billion. Both companies specialize in 3-D printing of metals for use in industries such as healthcare and aerospace.

Arcam generated $68 million in revenue last year while SLM Solutions produced $74 million. The deal will add about 545 employees to GE, with the acquired companies maintaining their respective headquarters in their home countries.

The purchases are just the latest in GE's buildup of its 3-D printing prowess. Since 2010, GE has invested about $1.5 billion in the 3-D printing, which it also refers to as additive manufacturing.

The benefits of 3-D printing are clear. Because they require less welding and machining, 3-D-printed components are generally lighter and more durable than those that manufactured through more traditional means. The process also results in far less scrap material and offers designers more creative options.

The company has used 3-D printing technologies for its Power, Oil & Gas and Healthcare divisions. In July, it expanded to include aviation, producing complex fuel nozzles for the LEAP jet engine built by CFM International, a company GE co-created in partnership with Safran Aircraft Engines of France. GE says that more than 11,000 engines are on order with up to 20 fuel nozzles inside every engine.

GE plans to produce more than 40,000 fuel nozzles using 3-D printing tech by 2020, part of the company's plan to grow its 3-D printing into a $1 billion business by the end of the decade.

General Electric stock (GE) was down 1.3% to $30.88 in midday trading Tuesday.

Follow Eli Blumenthal on Twitter @eliblumenthal