Proto Labs Reaches Agreement to Acquire RAPID, Expands Services with Sheet Metal Fabrication

MAPLE PLAIN, Minn.–(BUSINESS WIRE)–Proto
Labs (NYSE: PRLB), a global leader in technology-enabled
manufacturing, has entered into a definitive agreement to acquire
privately held company Rapid Manufacturing Group, LLC (“RAPID”).
RAPID is a New Hampshire-based custom parts supplier specializing in
quick-turn sheet metal fabrication and CNC machining. With the
acquisition, Proto Labs will be able to offer its customers another
quick-turn manufacturing service while expanding its CNC machining
capabilities.

“Quick-turn prototyping and low-volume manufacturing have always been at
the core of RAPID, and this foundation makes us a natural fit with Proto
Labs’ digital model,” said Jay Jacobs, founder of RAPID. “I’m excited
about the opportunities our combined manufacturing services will provide
for our customers who will now have a single source for a variety of
manufacturing services, including injection molding and 3D printing.”

RAPID was founded in 2001 on the idea of using automation to provide
custom sheet metal parts faster than traditional methods—a story that
closely parallels Proto
Labs’ own. Over the next 16 years, RAPID steadily grew its
manufacturing operation in terms of both capabilities and scale,
including the addition of CNC machining, and now operates in 140,000 sq.
ft. of manufacturing space. The company currently employs approximately
300 people, and will expand Proto Labs’ team to more than 2,000
employees worldwide.

This expansion of Proto Labs’ services and capabilities reinforces its
promise to customers to continue to seek ways to further optimize
product development and improve supply chain efficiencies through a
variety of digital manufacturing methods.

“We listen to our customers very closely to understand their needs,”
explained Vicki Holt, Chief Executive Officer of Proto Labs. “We
continue to look for opportunities to expand our capabilities to serve
our existing customers and to expand our customer base. RAPID not only
adds quick-turn and e-commerce-enabled sheet metal services to our
portfolio, it also expands our machining capabilities to support larger
and more complex projects. In addition, RAPID’s culture is highly
aligned with that of Proto Labs, with a talented and experienced team
that we are very excited to welcome to the Proto Labs family.”

Under the terms of the agreement, Proto Labs will acquire RAPID for an
aggregate purchase price of $120 million consisting of $110 million in
cash and $10 million in Proto Labs stock. RAPID’s 2017 annual revenue is
forecasted to be approximately $45 million. The transaction is expected
to close by the end of the year, subject to customary closing conditions.

Proto Labs will be hosting an analyst day on Tuesday, Dec. 12, where
presentations will be given by Holt and members of Proto Labs’
leadership team discussing the company’s business strategies and growth
opportunities including the acquisition of Rapid Manufacturing. A live
webcast of the event will be available on the Proto Labs investor
relations page at protolabs.com
beginning at 10 a.m. EST on Tuesday, Dec. 12. A replay of the webcast
will be available shortly after the event.

About RAPID
RAPID is a quick-turn manufacturer of sheet
metal and CNC machined parts. The company has built a reputation of
providing customers quotes within a day, and delivering prototype and
low-volume production parts to customers fast. Since it opened its doors
in Nashua, NH in 2001, the company has grown to over 300 employees with
three manufacturing facilities. Visit rapidmanufacturing.com
for more information.

About Proto Labs
Proto Labs is the world's fastest digital
manufacturing source for rapid prototyping and on-demand production. The
technology-enabled company produces custom parts and assemblies in as
fast as 1 day with automated 3D printing, CNC machining, sheet metal
fabrication, and injection molding processes. Its digital approach to
manufacturing enables accelerated time to market, reduces development
and production costs, and minimizes risk throughout the product life
cycle. Visit protolabs.com
for more information.

Forward-Looking Statements
Statements contained in this
press release regarding matters that are not historical or current facts
are “forward-looking statements” within the meaning of The Private
Securities Litigation Reform Act of 1995. These statements involve known
and unknown risks, uncertainties and other factors which may cause the
results of Proto Labs to be materially different than those expressed or
implied in such statements. Certain of these risk factors and others are
described in the “Risk Factors” section within reports filed with the
SEC. In addition to statements that explicitly describe such risks and
uncertainties, readers are urged to consider statements in the
conditional or future tenses or include terms such as “approximately,”
“estimate,” “expected,” “plan,” “believe,” and variations of such words
or similar expressions are intended to identify forward-looking
statements

These forward-looking statements are based upon the expectations of
management under current assumptions at the time of the press release.
Proto Labs cannot guarantee future results, levels of activity,
performance or achievements. Accordingly, you should not place undue
reliance on these forward-looking statements. Finally, Proto Labs
expressly disclaims any intent or obligation to update any
forward-looking statements to reflect subsequent events or circumstances.

Contacts

Investor Relations Contact:
Proto Labs
Dan
Schumacher, 763-479-7240
Director of Investor Relations
[email protected]
or
Media
Contact:
Padilla for Proto Labs
Tim Nelson,
612-455-1789
[email protected]