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BaltCap sells EKJU to AMATA

 

Garden furniture specialists, EKJU, have followed a record year in 2020 with more exciting news for the future of the company. A deal has been agreed for a change of ownership which sees previous owners including BaltCap, exit the business and sell to a new holding company, AMATA, which will be run by the existing management team who will continue operations at their manufacturing site in Latvia.

 

As part of this management buyout deal private equity fund Flycap and Signet Bank will be financing the venture which will foster the company’s future growth and back its way towards new goals.

 

EKJU are one of Europe’s biggest manufacturers and exporters of timber Garden Furniture and have been exporting products throughout Europe for over 25 years. Their extensive product range is manufactured using northern European FSC Pine and Spruce that is ideal for use on Garden Furniture due to its high density and durable qualities. EKJU’s hero products include Picnic Tables, Garden Benches and Table Sets, which they supply to retail organisations of all sizes. They also supply a wide range of Grow Your Own products such as Planters and Raised Beds.

 

Same management, same principles

Since 2012, the EKJU management team have been improving production methods to increase productivity and has been successful in setting up a growth strategy, with sales rising from €5.6 million back in 2012 up to over €13 million in 2020. As part of this strategy EKJU have taken sustainability very seriously for many years and have been working towards carbon neutrality for all company operations, which they have now achieved.

 

EKJU are a dedicated team with a love for nature and craftsmanship, always using quality materials to create long lasting products. Furniture is manufactured with respect for nature. By working with quality sustainable live wood, they keep their promise of being environmentally friendly. EKJU pride themselves on bringing people together and closer to nature to enjoy the great outdoors.

 

It is the same management team that will now press ahead with further growth plans within the AMATA umbrella, using the same formula with the help of its valued existing employees. Customers will not see any changes to service levels or company values and will now be serviced by AMATA.

 

Changing ownership, changing market conditions

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 are 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 explained: "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 and the market to the best of our ability, being sustainable and always supplying quality products."

 

To view the EKJU website click here where you can find out about EKJU’s products and capabilities.

If you want to speak to a EKJU contact about their products and services, please email UK sales Manager Austris Intenbergs at austris@ekju.lv.

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