AMG Critical Materials reacquires 40% stake in Graphit Kropfmühl

Published 12/03/2025, 19:50
AMG Critical Materials reacquires 40% stake in Graphit Kropfmühl

AMSTERDAM - AMG Critical Materials N.V. (EURONEXT AMSTERDAM: AMG), a $4.74 billion market cap company specializing in critical materials and related technologies for a less carbon-intensive world, announced today the completion of its repurchase of a 40% ownership interest in Graphit Kropfmühl GmbH. This transaction, which was initially disclosed on December 23, 2024, has been finalized as of today, in line with the previously announced terms. According to InvestingPro data, this move aligns with management’s strategy of aggressively buying back shares.

Graphit Kropfmühl, under the umbrella of AMG, focuses on the production and development of energy storage materials, including lithium, vanadium, and tantalum. These materials are essential for advancing technologies that contribute to CO2 reduction. The company’s operations span various segments, from lithium value chain processes to vanadium recycling and advanced metallurgy for aerospace engines. The company’s strong operational efficiency is reflected in its impressive 55% gross profit margin and healthy return on assets of 8.3%, according to recent financial data.

The repurchase signifies a strategic move by AMG to strengthen its position in the market for energy storage and CO2 reduction materials. The 40% stake in Graphit Kropfmühl was previously held by an affiliate of Alterna Capital Partners.

AMG operates globally with a workforce of approximately 3,600 employees and production facilities located in several countries, including Germany, the United Kingdom, France, and the United States. The company’s reach extends to sales and customer service offices in Japan. With a strong current ratio of 4.16, AMG maintains excellent liquidity to support its global operations. InvestingPro analysis suggests the stock is currently trading below its Fair Value, making it an interesting opportunity for value investors. Get detailed insights and 6 additional ProTips with an InvestingPro subscription, including access to comprehensive Pro Research Reports covering 1,400+ top stocks.

The completion of this transaction is part of AMG’s broader strategy to enhance its capabilities and offerings in critical materials, which play a pivotal role in addressing environmental challenges. AMG’s portfolio includes systems engineered to reduce CO2 emissions, particularly in aerospace engines, and spans mineral processing operations in graphite, antimony, and silicon metal. The company’s financial strength is evident in its net income of $511.6 million over the last twelve months, demonstrating its ability to execute on strategic initiatives while maintaining profitability.

This news is based on a press release statement and provides a factual report on the completed repurchase of the ownership interest in Graphit Kropfmühl by AMG Critical Materials N.V.

In other recent news, Affiliated Managers Group (AMG) reported its fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of $6.86, compared to the forecasted $6.02. However, the company’s revenue fell short of projections, recording $502.7 million against an anticipated $531.53 million. Despite these mixed results, AMG achieved its highest quarterly EBITDA for the year and revised its 2025 adjusted EBITDA outlook upwards to a range of $130 million to $150 million. Additionally, AMG announced the extension of its $500 million Equity Distribution Program, allowing the company to offer and sell shares of its common stock through various financial institutions. The company also entered into Forward Sale Agreements with these institutions, offering financial flexibility for future transactions. Furthermore, AMG has significant expansion projects underway in the lithium and vanadium sectors, including a vanadium project in Saudi Arabia and a potential spodumene conversion plant in Brazil. Notably, AMG’s strategic moves are designed to maintain its competitive position as a low-cost producer in these segments.

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