Private equity fund Morphosis Capital Fund I completed a transaction in the field of integrated solutions and services for industrial access by acquiring together with the fund’s investors the majority stake of 51% of EMI, the leader in this sector on the local market. The value of the transaction amounts to 15 million euros, capital that will fuel the growth of EMI’s product range and customer base, as well as its international expansion.
“After 21 years of teamwork, EMI has reached, through this transaction, a turning point, which will allow us to develop faster in Romania and to expand from here on the European market, primarily in Belgium and France. We have a solid business model, tested all these years, in which we became one of the market leaders in Romania, the only company that offers the full range of bespoke services for industrial access systems and the undisputed leader for preventive and curative maintenance services. Our business model is based on people and work ethic, values and skills, and the constant search for performance. We are thrilled to have an important partner next to us that recognizes the value that the EMI team has built over the years and, above all, its uniqueness on the market. Together with Morphosis Capital, we will accelerate the development of EMI to become the go-to one-stop-shop for total industrial solutions and complex technical projects both in Romania and Europe. I want to thank my colleagues at EMI and all the clients and suppliers I have worked with for reaching this level together,” stated Jerome France, founder, and CEO of EMI.
EMI has 21 years of experience on the Romanian market, specializing in industrial access solutions – doors, gates, shutters, curtains, fences and other industrial enclosures. The company provides integrated solutions, from consulting, design, manufacturing, assembly, to maintenance and service, for global access solutions for the industrial, commercial, and logistics sectors. At its factory in Căteasca, EMI also develops unique technical solutions adapted to client needs.
The company operates in all industries and works with the most relevant companies from various sectors such as: automotive and agri-food industry, developers and operators of shopping centers and logistics parks, as well as construction companies. EMI has 70 employees, organized in intervention teams throughout the country, and the Căteasca factory.
In 2020, EMI registered a turnover of over 55 million lei, with an increase of 6% compared to 2019. The partnership between EMI and Morphosis Capital aims to strengthen the national leadership position of EMI in the field of industrial access solutions, attracting clients from new niches and expanding into new markets through M&A transactions.
“We are thrilled to announce our partnership with EMI, a unique business with stellar 21 years track-record, and Jerome France, who managed to build an unparalleled leader on the Romanian industrial market. Today’s transaction marks many firsts for us – it is the first transaction for which we partnered up with our co-investors, whom we thank for their trust. It is also the largest deal to date, a size that we envision for our next fund, and the first deal in the sector of manufacturing and services. Together with Jerome France, we look forward to accelerating the development of EMI by expanding the product range and the geographies in which we are present. The strict regulatory changes in the sector and the demand for sustainable and energy-efficient solutions will increase the demand for industrial door solutions. EMI has all the resources needed to adapt to the new production requirements and deliver state-of-the-art industrial access systems,” stated Andrei Gemeneanu, Managing Partner, Morphosis Capital.
Investment in EMI is the largest transaction to date for Morphosis Capital, above the usual 5-to-10-million-euros range thus far invested by the fund. To increase the size of the transaction, Morphosis Capital partnered up with family offices from Belgium, Vybros, Tilleghem and other investors in Fund I. Following this investment, Morphosis Capital and the co-investors hold a 51% majority stake in the company, while the remaining 49% is maintained by the founder and CEO, Jerome France.
EMI is the fourth transaction for Morphosis Capital that has previously invested in DocProcess, Medima Health, and Dr Leahu Dental Clinics. The private equity fund estimates that will carry-out three more deals by mid-2022, and by that time, it will deploy the entire capital from Fund I in the total amount of 50 million euros.
The transaction was facilitated by law firms RTPR, advising Morphosis Capital and Leroy & Asociatii, advising EMI, as well by Crédit Agricole Romania, member of the Group Vista Bank. PwC provided financial, tax and commercial due diligence. The transaction was approved by the Romanian Competition Council on August 25, 2021.
EMI is the market leader in industrial access systems. Since its establishment in 2000, the company has specialized in integrated consulting, design, manufacturing, installation, maintenance and service solutions for industrial access solutions dedicated to industry, shopping centers and logistics centers. EMI has its own factory in Căteasca, near Pitești, where it creates specific and bespoke solutions for the company’s clients. The factory is in the top of European manufacturers due to its high-performance production system, equipped with state-of-the-art equipment. EMI has developed intervention teams that cover the whole country and are available in a very short time, most of the interventions being carried out in a maximum of 24 hours.
About Morphosis Capital
Morphosis Capital is a private equity fund with 50 million euro committed capital. Established in December 2018 by four Romanian entrepreneurs, Simona Gemeneanu, Gabriela Dumitru, Dragos Petre, and Andrei Gemeneanu, the Fund aims to contribute to the development and transformation of the Romanian SMEs. The European Investment Fund (EIF), the leading financing platform for European SMEs, co-financed through the Regional Operational Programme, is the anchor investor in Morphosis Capital, while the founders themselves are the co-investors in the fund. Morphosis Capital invests between five to ten million euro in high growth Romanian companies from sectors such as FMCG, niche healthcare, technology, and B2B services, which have a strong potential for international expansion and an EBITDA of a minimum of half a million euro. Morphosis Capital portfolio includes DocProcess, Medima Health, Dr Leahu Dental Clinics and EMI.