BaltCap Latvia Venture Capital Fund sells EKJU SIA, one of the leading European wood garden decoration and furniture producers, to AMATA SIA supported by private equity fund Flycap and Signet Bank.
BaltCap invested in EKJU in 2012. During the holding period EKJU internationalised the business, strongly reinforced the company operations and sustainability approach. EKJU entered French, the UK and German DIY market and launched a successful e-commerce platform being today one of the most advanced suppliers for European e-commerce in the wooden garden furniture sector. The company introduced LEAN and TOC production methods to improve productivity and increased its sales from €5.6 million back in 2012 up to over €13 million in 2020.
Peteris Treimanis, Investment Director at BaltCap says he is proud that along with strong business growth EKJU established itself as a leader in workplace and sustainability issues. “Today EKJU is the most desired employer and one of the leading taxpayers in the region. During BaltCap holding period, EKJU paid more than €7.3 million taxes in total and contributed substantially to the development of the region. BaltCap trusts the long-term view of the new owners to take the business to the next development phase,” Treimanis adds.
Ivars Kassalis, Head of the Financial Intermediaries Department at Altum, the largest investor in both BaltCap Latvia Venture Capital Fund and FlyCap funds, is very pleased that BaltCap’s investment and expertise have helped EKJU to achieve remarkable results. “I trust FlyCap’s latest investment will foster the company’s future growth and back its way towards new goals.
FlyCap Partner Janis Skutelis says wood industry is an attractive investment area, where Latvia has a competitive advantage. “Combined with the environmentally friendly production line and top level company operations EKJU has built over the last decade, we see a great potential to further expand its service and product offering in the European markets,” Skutelis explains their investment rationale.
The CEO of Signet Bank, Roberts Idelsons, comments, “We highly appreciate the professional management team of EKJU and we see great potential for EKJU’s further development. As a local capital bank, we are excited to finance this transaction and help local entrepreneurs with talent and a forward-looking mindset to build the business further and expand its international reach. The principles of sustainable development followed by EKJU are well aligned with the Signet Bank’s sustainability approach,” Idelsons adds.
The CEO of EKJU SIA, Maris Danieks, adds, “During our journey with BaltCap and EKJU founding partners we achieved fast growth and solid financial situation. It was a great pleasure to work with BaltCap´s professional team. We are happy to continue developing the company we built together. We aim for long term success and stability for our employees and customers.”
The leading financial consultant for buyer was Superia Corporate Finance.
EKJU is one of the leading European wood garden decoration and furniture producers, known for its high product and delivery quality. EKJU uses most CO2 and environmentally friendly renewable raw material – wood from Baltic and Nordic sustainably managed forests. The company owns full cycle of order delivery process from creating the design, manufacturing actual products, and doing deliveries up to final customer.
FlyCap manages an investment fund asset of €35 million and has invested in 26 Latvian companies.
About Signet Bank
The bank was founded in 1992 as Latvijas Biznesa banka. Since 2013, it has focused its strategy on servicing entrepreneurs and their businesses, with an emphasis on high-quality capital maintenance and structured investment projects. Signet Bank’s majority shareholders are a group of Latvian and international investors, which include SIA Hansalink, SIA Fin.lv, and Signet Acquisition III.
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