Desktop Metal, a manufacturer of metal 3D printing technologies, has filed for Chapter 11 bankruptcy, according to a press release from Nano Dimension, which completed its contentious acquisition of the company in April.
The release also noted Nano Dimension’s “strategic decision not to acquire assets” of Desktop Metal: “We are safeguarding our financial strength and preserving our position as the best capitalized company in our ecosystem,” said CEO Ofir Baharav.
Nano Dimension said the decision to file for bankruptcy protection was made by Desktop Metal’s independent board of directors, “who conducted a process to explore available strategic alternatives and address Desktop Metal’s significant liabilities and liquidity needs stemming from decisions made by its prior management.”
In a separate release, Desktop Metal said it had contracted to sell four foreign subsidiaries and entered Chapter 11 “to implement the sale and protect the business while it markets its remaining assets.”
Wohlers Associates, a consulting firm specializing in additive manufacturing, offered its analysis in its weekly newsletter, recounting the failed acquisition attempt by Stratasys in 2023 and its subsequent deal with Nano Dimension, which led to a legal battle to force completion of the deal.
“Upon closing, Nano indicated that it would consider strategic alternatives for Desktop Metal, setting the stage for the company’s bankruptcy filing,” the Wohlers analysis said.
“Chapter 11 bankruptcy suggests that Desktop Metal is planning to reorganize, as opposed to Chapter 7 bankruptcy, in which the company’s operations are liquidated. However, Nano's announcement, supported by reporting from industry sources, suggests that the company's intention is to liquidate Desktop and sell its assets. ... Desktop's core metal binder jetting business might be an attractive, bargain-basement opportunity for an acquirer wishing to try its luck with BJT [binder jetting] technology.”
The additive manufacturing space, while it continues to make technological advancements, is still finding its niche and has gone through a series of mergers, near-mergers and legal disputes in recent years.
Lynne Sherwin | Managing Editor
Managing editor Lynne Sherwin handles day-to-day operations and coordinates production of Plastics Machinery & Manufacturing’s print magazine, website and social media presence, as well as Plastics Recycling and The Journal of Blow Molding. She also writes features, including the annual machinery buying survey. She has more than 30 years of experience in daily and magazine journalism.
