EMJ Metals with Auctus Capital attracts a strategic partner - a global metal processing giant AMARI Metals.
A major strategic investor attraction between American metals giant AMARI Metals and Latvian metal processing company EMJ Metals was finalised last week with the help of Auctus Capital. Although the amount of the deal is undisclosed, Auctus Capital representatives point out that it is the largest investment transaction in the Baltic metalworking sector by an American company Amari Metals to date.
Amari Metals comments that it does not intend to make structural changes in any of the EMJ Metals companies, retaining all EMJ Metals business units. EMJ Metals will continue to operate as an independent entity within the AMARI Metals network with its own brand, logo and product range, and the management of the company will remain under the current owner and founder of EMJ Metals, Erik Altrok.
The attraction of a partner was a strategic decision to obtain the necessary resources for the growth of the company. AMARI Metals' global network will give the company access to a variety of raw materials and opportunities to expand the company's export regions. Until now, approximately the majority of EMJ Metals' turnover has been exported to countries such as Denmark, Sweden, the Netherlands, Germany, Norway, Finland, Lithuania and Estonia, AMARI Metals' global infrastructure will allow it to significantly expand these markets.
This type of transaction is not common in the metalworking industry due to the nature of the business.
"EMJ Metals has grown rapidly year on year since its foundation. To maintain this upward growth trajectory, the decision was taken to engage in an international tie-up to help grow new services, raw materials and markets. Finding a strategic, global partner whose vision matched that of EMJ Metals was therefore a truly challenging task. Now, looking at the outcome, we can say that this is definitely a deal we are proud of and see as a win-win for both parties involved in the transaction," comments Emils Enkuzens, Junior Partner at Auctus Capital.
EMJ Metals was founded in 2010 and has since grown to become the largest provider of metal laser cutting and bending services in the Baltics. In 2022, the company exceeded EUR 32.5 million turnover and EUR 2 million net profit. EMJ Metals employs more than 150 professionals. As part of the transaction, the subsidiary Baltic Steel Group, which focuses on the sale of steel plate, aluminium sheet and other non-ferrous metals, was also sold. The companies' combined revenues in 2022 exceeded EUR 40 million.
AMARI Metals is a US-based processor and distributor of semi-finished stainless steel, aluminium and copper alloys with a significant presence across Europe.
Auctus Capital is an M&A and fund raising advisory firm based in Riga, Latvia. The company was founded in 2010 by three partners. Managing Partner Mārtiņš Bluķis comments that despite various political and economic changes, Auctus Capital has had a successful year in 2022, as evidenced not only by the volume of projects launched, but also by the addition of two new professionals to the team.
Auctus Capital specialises in M&A advisory and fundraising transactions in the Baltic States. Auctus Capital assists clients with M&A, debt and restructuring services, strategy and management consulting, business valuation, specific financial analysis, preparation of documentation necessary for fundraising.