BaltCap sells EKJU to AMATA
Garden furniture specialist EKJU has been sold to a new holding company following a record year in 2020. A deal has been agreed for a change of ownership which sees previous owners including BaltCap, exit the business and sell to AMATA, which will be run by the existing management team who will continue operations at its manufacturing site in Latvia. As part of this management buyout deal private equity fund Flycap and Signet Bankwill be financing the venture which will foster the company’s future growth and back its way towards new goals.
EKJU is one of Europe’s biggest manufacturers and exporters of timber garden furniture and has been exporting products throughout Europe for more than 25 years. Since 2012, the EKJU management team has been improving production methods to increase productivity and has been successful in setting up a growth strategy, with sales rising from €5.6m back in 2012 up to over €13m in 2020. As part of this strategy EKJU has been working towards carbon neutrality for all company operations, which it has now achieved.
EKJU’s change of ownership comes at a time when market conditions are turbulent. Whilst demand for garden furniture products are very high, the raw material availability hasn’t been compatible in meeting these demands.
Shortages in timber raw materials due to periods of lockdown in the supply chain and increased demand in US markets, has led to a reduction of available products across the European timber market. EKJU like many manufacturers is currently working hard to secure the raw materials to service future business whilst also contending with substantial timber price increases that the whole market is experiencing. EKJU sales & marketing director, Laura Galzone explains: “The current supply chain conditions aren’t ideal, but as a team we face challenges every year and this is another one we are determined to overcome. With the same successful team working together backed by Signet Bank, we are delighted to form AMATA, where we will develop the EKJU brand furthermore. Our focus remains on servicing customers