Acquisition

RNS Number : 9590T

Johnson Matthey PLC

06 October 2010

 



For release at 2.30 pm on Wednesday 6^th October 2010

Johnson Matthey to Acquire Intercat

Johnson Matthey announced today that it has signed an agreement to acquire Intercat, Inc. and its subsidiaries from its private stockholders for approximately US $56.2 million in cash, which is net of adjustments for debt of US $29.4 million.  

Intercat is a leading supplier of Fluid Catalytic Cracking (FCC) additives and addition systems, specialising in the development, manufacture, sale and technical support of both additives and addition systems for the petroleum refining industry.  With a portfolio of over 22 products, Intercat's FCC additives and addition systems enable refiners to optimise yields and minimise emissions through exploiting the process synergies that exist in the FCC reaction unit.  

Intercat's technologies will strengthen Johnson Matthey's position in the growing petroleum refining catalysts sector, which is the second largest segment of the global catalyst market after environmental catalysts.  The refinery catalysts sector continues to grow strongly, driven by increasing demand for transportation fuels, the more difficult processing required by dirtier feedstocks and tightening environmental legislation.  Johnson Matthey's Process Technologies business is an industry leader in catalysts for on purpose refinery hydrogen production and supplies hydroprocessing catalysts and purification products to refineries around the world.  The acquisition of Intercat will provide important synergies both in terms of the products and technical support that Process Technologies provides to its customers in the petroleum refining industry and through leveraging its combined R&D capabilities.  

In its financial year to 31^st December 2009, Intercat had sales of US $58 million and made a normalised operating profit of US $8.4 million.  The company employs approximately 180 people and has production sites in Savannah, Georgia, USA and offices in the US, Netherlands and in India.  It will become part of the Ammonia, Methanol, Oil and Gas (AMOG) unit, within Johnson Matthey's Process Technologies business.  

Completion of the transaction is expected to take place on 31^st October 2010, subject to certain contractual conditions being met.  Johnson Matthey will finance the acquisition from existing borrowing facilities.

Commenting on this transaction, Neil Carson, Chief Executive of Johnson Matthey said: "The acquisition of Intercat marks an important step in our strategy for the development of our Process Technologies business.  It will greatly enhance our product offering in the key petroleum refining catalyst sector and provides us with opportunities to add value through both technology and marketing synergies."  

Enquiries: Ian Godwin Director, IR and Corporate Communications 020 7269 8410 Robert MacLeod Group Finance Director 020 7269 8484 Sally Jones Public Relations Manager 020 7269 8407 Howard Lee / Fiona Davis-Coleman The HeadLand Consultancy 020 7367 5222 www.matthey.com

 

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