Stamford, CT, August 2023: TrueNorth Capital Partners LLC is pleased to announce that its wholly-owned subsidiary, TNCP, LLC (“TrueNorth”) acted as exclusive financial advisor to Resonac Corporation (formerly Showa Denko K.K). through its subsidiary Showa Denko Carbon Mexico Holdings, S.A. de C.V. and Resonac Graphite America Inc. (collectively “Resonac”) on its acquisition of AMI Automation (“AMI”). Resonac acquired 50% ownership in AMI on February 5, 2021, with an option to acquire the remaining 50% shares within five years from that date. Accordingly, Resonac acquired the remaining 50% to complete the acquisition of 100% of the AMI shares.

AMI is a global provider of automation solutions, including hardware, software, and services for a wide range of industries. AMI provides software and services to optimize the operation of electric arc furnaces (hereinafter, “EAF”), which are used by the steel industry. In North America, where the EAF market is expected to expand further, about 90% of EAF steel is produced using AMI’s software. This testifies to the fact that AMI is recognized as a world-class innovation leader. Resonac is the leading global provider of high-quality graphite electrodes, with the world’s largest graphite electrode production capacity in six manufacturing facilities strategically located around the world.

The acquisition of 100% of the AMI shares will allow Resonac to make its graphite business evolve from simple provision of electrode products into provision of total solution services for EAF including support to digitalization of production process. Resonac has already started to provide AMI’s digital automation and optimization solutions that enhance EAF operating efficiencies, promote safety, energy conservation, and reduce greenhouse gas emissions while delivering greater value to customers.

Tsuyoshi (Yoshi) Togo, Managing Director at TrueNorth, with assistance from Fred Rossetti, acted as Lead Banker on this transaction.

Mr. Makoto Takeda, Executive Officer of Resonac Corporation and CEO of Graphite Business Unit, commented: “AMI’s advanced technology and talented engineers will support Resonac to improve its product and solution in automation for various customers’ industries and also to enhance the digitalization for the business process at Resonac itself. Especially, it is highly expected to create a unique business model of Resonac’s graphite electrode, combined with AMI’s solution service for EAF industry.” Mr. Takata added, “I really appreciate TrueNorth’s professionalism and timely advice and support to complete this cross-border acquisition between Japan and Mexico, from the purchase of the first 50% stake through completion of the acquisition of 100% of the AMI shares.”

Any further inquiries can be directed to TrueNorth at the contact information provided below:

Yoshi Togo, Managing Director
Direct Dial Phone Number: (203) 817-0284
E-mail address: ttogo@truenorthcp.com

Fred Rossetti, Managing Director
Direct Dial Phone Number: (203) 817-0276
E-mail address: frossetti@truenorthcp.com

About Resonac Graphite Business Unit:
Resonac manufactures and sells graphite electrodes to be used in EAF applications, where scrap metal and alternate iron units are melted to produce steel. Compared with the production of steel from iron ore in a blast furnace, CO2 emissions are reduced to about a quarter by using an EAF for steel production. Accordingly, blast furnaces are being replaced with EAFs at an increasing rate around the world. Resonac estimates by 2028 annual demand for graphite electrodes will increase by 50,000 to 70,000 tons. In the United States, where EAFs account for 70% of steel production, the number of new EAF projects are increasing. These new EAF projects are expected to require graphite electrodes with diameters of 28 inches (700 mm) and larger. Resonac is strong in the production of these supersize electrodes.

About AMI Automation:
AMI is an international automation and control solutions company with a focus on designing, manufacturing, and implementing innovative technology solutions to provide process improvements that help make companies more efficient. AMI combines over 30 years of experience with automation and controls including artificial intelligence to assist customers with the challenges of implementing and upgrading to new technology solutions. Industries served include Steel, Cement, Pulp and Paper, and Oil and Gas.AMI has more than 30 years of experience making Electric Arc Furnaces and Drive Systems perform better.

About TrueNorth Capital Partners LLC:
TrueNorth provides advisory services to companies seeking advice for middle-market M&A and financing transactions. With offices in Stamford CT, Charleston SC, Central NJ, Naples FL, Minneapolis MN, Tokyo Japan, and London UK, TrueNorth is a boutique investment bank comprised of senior bankers providing a full complement of financial advisory services. Our focus on the middle-market enables us to provide independent, value-added advisory services to privately held middle-market companies, private equity and family office groups and corporate clients, both domestic and international, across a broad range of industries. TrueNorth conducts its securities related business through its wholly owned subsidiary, TNCP, LLC, member FINRA/SIPC.

About Scout Valuations LLC:
Scout Valuations, a wholly owned subsidiary of TrueNorth, is fully dedicated to business valuation. We provide thorough, independent valuation analyses together with superior client service and responsiveness. Our analyses combine a detailed understanding of the business, industry and economic context, with the insight to address complex valuation issues regarding your business.