Zeda has put its entire machine park up for auction, less than a year after the ceremonial opening of its $20 million factory
The Atomic Layers: S5E6 (00122)
Atomic Layer of the Day:
This is yet another remarkable story from the AM industry… On January 15 of this year, Sarah Saunders from 3DPrint.com published a report following her visit to the headquarters of the American metal AM service company Zeda. Together with its partner, Velo3D, the company organized a conference for media and clients, showcasing a phenomenally equipped, modern AM factory. This facility was developed with an investment of $20 million, sourced from a previously secured $52 million Series B funding round.
I highly recommend clicking this link to see the fantastic photos. It truly is a stunningly beautiful metal 3D printing factory.
However, today Alex Tyrer-Jones from 3D Printing Industry shared the news that the New Mill Capital auction house has listed Zeda’s entire $20 million machine park for sale. The offer includes four metal 3D printers from Velo3D (2 Sapphire XCs and 2 Sapphires), four AddUp FormUp 350 3D printers, an Arcam EBM Q10plus, and seven high-quality CNC milling machines (including five-axis models from DMG Mori and Tsugami), along with a significant amount of additional equipment.
According to the auction house, the machines have low operating hours, which I find believable. After all, it has been less than a year since the aforementioned conference.
If the name Zeda doesn’t ring a bell, keep reading.
Zeda was formed in March 2023 as a result of the formal merger between PrinterPrezz and Vertex Manufacturing. PrinterPrezz was established in 2018 with a focus on developing metal 3D printing solutions for the medical sector. In 2021, after securing its first funding, PrinterPrezz acquired Vertex Manufacturing, a machining shop led by Greg Morris, a pioneer in additive manufacturing.
Greg Morris was a co-founder of Morris Technologies (MTI), the first U.S. company to introduce a metal 3D printer in 2003. In 2012, MTI was acquired by GE. This year, Morris received the AMUG 2024 Innovators Award, joining luminaries like Chuck Hull, Scott Crump, Carl Deckard, Fried Vancraen, Gideon Levy, Hans Langer, Andy Christensen, and Diana Kalisz. Thus, Greg Morris is a legend in the AM industry. But as we can see, even legends are not immune to this kind of fate…
PrinterPrezz was led by CEO Shrinivas Shetty, who has a background in chemical engineering and advanced manufacturing. Following the Vertex acquisition, Greg Morris took on the role of CTO.
In early 2023, Zeda secured $50 million in investment through a Series B financing round. The funding was supported by various investors, including Boutique Venture Partners, DOV Management, and Taiyo Nippon Sanso Corporation, a Mitsubishi Chemical Group company. These investors emphasized Zeda's ability to deliver end-to-end solutions in regulated industries such as medical devices, aerospace, and defense.
The money was invested in a 75,000-square-foot (~7,000 square meters) headquarters and an extensive machine park. The headquarters was located in Springdale, Ohio, USA, although the company also had locations in Fremont, California, and Singapore.
In February of this year, Zeda acquired The Orthopaedic Implant Company (OIC) and announced plans to produce implants. OIC was rebranded as Zeda Health.
However, it seems not much was produced, as the entire machine park is now up for auction. The auction is set to formally begin on January 15, 2025. Here you can find all the details—who knows, maybe you’ll buy something?
I have to say, it’s truly amazing how Western—and specifically American—AM companies burn through money. Or rather, I’m not sure what fascinates me more: the sheer amount of money involved or the speed at which it’s lost.
Because let’s be honest, putting all your newly purchased machines up for auction is not something one would call a restructuring measure. If a company claims to be a global leader in metal 3D printing services, it probably won’t be one after selling off all its assets.
What intrigues me is the fate of the acquired companies—OIC and, earlier, Vertex Manufacturing. Did these companies sell because they had no other choice, or because they saw value in the merger for their future growth? If it’s the latter, that’s truly unfortunate… But if it’s the former, then perhaps not.
Still, if it is indeed the latter, they’ll be yet another set of wasted enterprises that perish due to poorly considered acquisitions fueled by investors' free money.
Atomic Layer from the Past:
12-06-2012: SLM Solutions introduced the SLM 500 HL metal 3D printer.
News & Gossips:
Aurora Labs was awarded Australian Department of Defence contract worth $319,000.
Beehive Industries has opened its new 60,000 square foot headquarters in Centennial, Colorado. The facility is designed to put additive manufacturing at the center of jet engine and defense technology development. I hope they have better luck than Zeda…
I shouldn't write this, but damn... Apparently something really powerful happened yesterday. If it's made public, it will be bigger than what happened on July 3rd. I won't write anything more for now, because 10 years in this industry have taught me that in such cases it's not worth being the first. So we wait…