Aimia Inc.

Good morning, ladies and gentlemen, and welcome to the EMEA Inc. third quarter 2023 results conference call. At this time, all lines are in listen-only mode. Following the presentation, we'll conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, November 14th, 2023. I would now like to turn the conference over to Albert Matusak. Please go ahead.

Thank you, Colin, and welcome everyone to this morning's call. Today's presentation is available on CDAR Plus and on our website. Before we get underway, I would like to remind everyone to please review our forward-looking statements and the cautions and risk factors pertaining to the statement. My name is Albert Matusak, Head of IR and Communications. With me on the call today are speakers Phil Middleman, EMEA CEO, Michael Lehman, our president, and Steve Leonard, our CFO. Phil will begin with our strategic highlights, followed by Michael, who will cover the performance of our investments and hand the call over to Steve to walk us through the results of the quarter. We'll have time for your questions at the end. With that, let me hand it over to Phil.

Thanks, Albert, and good morning to everyone on the phone and webcast today. I'm pleased to report strong performance by both Bizetto and Cortland in the third quarter. Their combined adjusted EBITDA of $17.4 million is a testament to the underlying strength of each of those businesses and their excellent management teams. I'd like to focus my comments on some recent highlights at both Bizetto and Cortland. Last week, we announced Bizetto's planned acquisition of Starchem, a specialty chemicals producer. This is a critical step towards the company's expansion into the Americas, which has been an important component of our investment thesis. Bozzetto has signed a definitive purchase agreement to acquire 65% of Starchem for $25.1 million, with a potential earn-out of an additional $12.5 million based on EBITDA targets. The Starchem management team will retain a material minority position of 35% and will continue to operate the business in partnership with Bozzetto. We expect Starchem to generate approximately $48 million in revenue in the fiscal year ending December 31, 2023, with an EBITDA margin of approximately 12%. StarChem is at the forefront of the specialty chemical solution industry in Honduras, which is one of the world's largest textile-producing markets. StarChem serves major U.S. manufacturers such as Fruit of the Loom, Hanes, and Gildan. Its facilities have an installed production capacity of 20,000 metric tons annually, with room to expand. StarChem, with a reputation for excellence, has been in business with Bizetto since 2013. From a strategic point of view, StarChem will serve as a platform for Bizetto to pursue further growth opportunities in the Americas. We believe Bizetto's ESG-focused chemical solutions will be well-received in the Americas, both in the textiles vertical and its other verticals, dispersion solutions, and water solutions. Starchem's manufacturing capacity and proximity to target customers will enable Bizetto to service new customers throughout the hemisphere. We viewed expansion into the Americas as a top priority for Bizetto, which is already a leader in selected European and Asian markets, and we are very excited about the new opportunities that Starchem will drive. This transaction is perfectly aligned with our strategy to grow our portfolio companies by helping them identify and finance a creative and synergistic acquisition opportunities, allowing us to build world-leading businesses for our stakeholders. The business case for Starchem is similar to the Tuferos purchase of Cortland Industrial. We have already seen early success with the combined organization now operating as Cortland International. Let's move on to Cortland's recent highlights. Under the Cortnett International brand, we recently appointed a new leadership team that is well-possessed to steer the business toward the bright future. Stuart Janke, our new CEO, brings over 35 years of global experience in the synthetic rope industry. Having worked in diverse markets across Asia, Pacific, and Australia, and having led partnerships in China, India, and Southeast Asia, Stuart's insight is invaluable for our continued global expansion. Brian Pettipot, our new CFO, brings insights from a career spanning a variety of sectors, including a long track record of success in private equity. Their collective experience and dedication, along with that of their colleagues, is already making a significant impact, evidenced by the smooth integration of Tuffer Oaks and Cortland. As outlined at our recent Investor Day, the Cortland team has identified specific market opportunities in various global sectors. The combined entity offers a unique value proposition of high-quality, cost-advantaged manufacturing from the tough rope side and global technical leadership from the Cortland side. We're making strides in enhancing our presence in high-performance synthetic fibers and custom solutions across ropes, slings, and tether segments. We expect synergies to generate substantial value, and we're eager to see these developments unfold in the coming quarters. Mike will provide further details on the performance of Bizetto, Cortland, and our other investments in a moment. Before turning it over to him, I'd like to comment on some other important developments at AMIA. In October, we completed a private placement that raised gross proceeds of $32.5 million to support our continued growth. Concurrently, we welcome two new esteemed members to our board of directors, Thomas Fink and Yannis Skoufoulis, both of whom are independent and bring with them a wealth of success and knowledge from Fortune 500 company leadership. Thomas Fink, our new chairman, expands the board expertise with his vast experience in financing governance. Giannis will enhance the board's expertise with his three decades of experience in supply chain management, procurement, and logistics. This continued board rejuvenation signifies AMIA's unwavering commitment to bolstering our leadership capabilities, ensuring robust governance, and creating shareholder value. And with that, let me turn the floor over to Mike to provide you with some further updates on our investment portfolio. Mike?