Johnson,Matthey PLC
01 October 2004
For Release at 7.00 am Friday 1st October 2004
Johnson Matthey Completes Acquisition of Lancaster Synthesis
Johnson Matthey announces that it has completed the acquisition of the worldwide
business of Lancaster Synthesis Limited ('Lancaster') from Clariant AG
('Clariant') for £2 million.
Johnson Matthey originally announced on 13th July 2004 that it had agreed to
acquire the worldwide business of Lancaster from Clariant for £14 million. The
transaction was conditional upon regulatory approval in Germany.
On 27th July 2004, prior to the completion of the acquisition, there was a
serious fire at Lancaster's UK premises which resulted in the destruction of its
pilot scale manufacturing facility and the loss of most of its stock. Johnson
Matthey and Clariant subsequently entered into, and have now concluded,
negotiations to modify the terms of the proposed acquisition of Lancaster to
reflect the impact of the fire on the Lancaster business. Under the revised
terms Johnson Matthey will purchase the business and certain undamaged tangible
assets of Lancaster whilst the property that was affected by the fire and the
proceeds of any insurance claim will remain with Clariant.
Lancaster sells a wide range of organic chemicals mainly to industrial and
academic research institutions. It has catalogue sales and laboratory scale
manufacturing operations in Morecambe, UK and additional distribution facilities
in the USA, Germany, France and India.
The business had sales of £19.6 million in 2003 and employs 225 people
worldwide.
Lancaster's operations remain an excellent fit with those of Johnson Matthey's
existing Research Chemicals business and its acquisition provides opportunities
to improve market share and increase operating efficiencies.
Johnson Matthey will be taking a £2 million exceptional provision to integrate
the Lancaster business with its existing operations.
Commenting on the acquisition Neil Carson, Chief Executive of Johnson Matthey
said:
'Lancaster Synthesis remains an excellent fit with our existing Research
Chemicals business. Despite the impact of the major fire that occurred on the
Morecambe site on the 27th of July, we have been able to secure much of the
value inherent in the Lancaster business with its strong brand and market
franchise. The acquisition will allow the enlarged organisation to offer a
greatly enhanced range of products and services to customers of both
organisations.'
Enquiries:
John Sheldrick Group Finance Director 020 7269 8438
Ian Godwin Group Corporate Communications Manager 020 7269 8410
Howard Lee The Headland Company 020 7036 0369
Laura Hickman Gavin Anderson & Co 020 7554 1400
www.matthey.com
This information is provided by RNS
The company news service from the London Stock Exchange
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