AMG Critical Materials Sells Graphit Kropfmühl GmbH to Asbury
AMG Critical Materials Announces Strategic Sale
AMG Critical Materials N.V. (EURONEXT AMSTERDAM: AMG) has made waves in the industry with the announcement of a definitive agreement to sell Graphit Kropfmühl GmbH (GK) to Asbury Carbons Inc. This decision is rooted in AMG's strategy to optimize its portfolio and strengthen its core businesses.
Details on the Transaction
The transaction, which comes with an impressive enterprise value of $65 million, allows Asbury Carbons, a notable entity in carbon-based solutions, to assume full operational control of GK. The acquisition includes approximately 350 dedicated employees who have helped drive GK's success.
Operations of Graphit Kropfmühl
Graphit Kropfmühl has established itself with a robust graphite mine located at its headquarters in Germany, along with a majority stake in another graphite mine located in Sri Lanka. The acquisition is expected to boost Asbury's capabilities in the market and expand its existing operations.
Management Insights
In a statement regarding the sale, Dr. Heinz Schimmelbusch, CEO of AMG Critical Materials, emphasized the company's commitment to proactive management of its business portfolio. He expressed confidence that Asbury's resources and expertise would provide GK with enhanced growth opportunities.
Despite the potential of the natural graphite market, AMG has struggled to position GK as a leader in supplying battery anode materials. The sale will allow the company to redirect its focus towards ventures more aligned with its core growth strategies.
Past Developments Leading to the Sale
This sale is the latest move following AMG's prior transaction where it reacquired a 40% interest in GK from Alterna Capital Partners. This earlier transaction had set the stage for AMG's final steps out of the natural graphite sector.
Asbury Carbons' Response
Gregg Jones, CEO of Asbury Carbons, expressed enthusiasm about the merger, highlighting the unified expertise both companies bring to the table. Together, they possess more than 250 years of collective experience, which promises to bolster supply security and introduce innovative technologies for their customers globally.
Future Prospects for AMG
The transaction is currently awaiting regulatory approvals, with both companies optimistic about closing the sale by the end of the year. The financial standards and operational guidelines will allow both parties to transition smoothly and maximize the potential benefits of the acquisition.
About AMG Critical Materials
AMG is dedicated to providing critical materials and technology solutions aimed at reducing carbon footprints across various industries. The company focuses on producing essential materials such as lithium, vanadium, and tantalum, which are pivotal for energy storage innovations.
Moreover, AMG operates with approximately 3,600 employees globally across various production facilities located in multiple countries including Germany, the United States, and Sri Lanka. By emphasizing its commitment to environmentally friendly operations, AMG strives to contribute positively to the future of clean energy technologies.
Contact Information
If you seek further information, please reach out to:
AMG Critical Materials N.V.
+49 176 1000 73 14
Thomas Swoboda
tswoboda@amg-nv.com
Frequently Asked Questions
What did AMG Critical Materials announce?
AMG announced the sale of Graphit Kropfmühl GmbH to Asbury Carbons, reflecting a shift in their business strategy.
What is the value of the transaction?
The enterprise value of the sale is $65 million.
What operations will Asbury Carbons take over?
Asbury will take over all operations of GK, including its employees and mining facilities located in Germany and Sri Lanka.
Why is AMG selling Graphit Kropfmühl?
AMG seeks to optimize its portfolio and focus on its core growth businesses rather than remaining in the natural graphite market.
When is the transaction expected to close?
Both companies anticipate the sale to close by the end of 2025, pending regulatory approvals.
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