J Matthey to buy Synetix
Johnson,Matthey PLC
23 September 2002
For release at 7.00 am Monday 23rd September 2002
Johnson Matthey To Buy Synetix
Johnson Matthey announced today that it has signed an agreement to buy the
Synetix division of ICI for £260 million in cash.
Synetix is a global catalyst business which serves a range of market segments
including ammonia, methanol, fine chemicals, edible oils, oleochemicals, oil and
gas and polymerisation. These activities complement Johnson Matthey's strong
position in precious metal catalysts for a wide range of markets. The
acquisition represents further progress in Johnson Matthey's strategy of growing
its Catalysts & Chemicals division both organically and by acquisition.
The combination of Johnson Matthey's catalyst businesses with Synetix will
present new opportunities to exploit the extensive catalyst technology and
research capabilities of both organisations. This will be particularly valuable
in new growth segments such as Gas to Liquids (GTL) technology for the energy
sector and chiral catalysis for the pharmaceutical industry.
In the year to 31st December 2001 Synetix reported sales of £146 million, EBIT
(earnings before interest and taxes) of £24 million and EBITDA (earnings before
interest, taxes, depreciation and amortisation) of £30 million. Net operating
assets at 31st December 2001 were £109 million. Synetix employs 800 people and
has manufacturing sites in the UK, Germany and India.
The transaction is conditional upon regulatory clearance in Germany. The sale of
those Synetix businesses which are owned by ICI India Limited is subject to the
approval of ICI India Limited's shareholders.
Johnson Matthey will finance this acquisition out of existing borrowing
facilities. Following the acquisition the group's debt to equity ratio will rise
to just under 50%.
Commenting on the transaction Chris Clark, the CEO of Johnson Matthey, said:
'The acquisition of Synetix is a significant step in growing our highly
successful Catalyst & Chemicals business and represents excellent value. The
combination of Synetix and our existing catalyst businesses will substantially
enhance our market leading position in the worldwide catalyst industry.'
Enquiries:
Chris Clark, Chief Executive, Johnson Matthey 020 7269 8435
John Sheldrick, Group Finance Director, Johnson Matthey 020 7269 8438
Ian Godwin, Group Corporate Communications Manager 020 7269 8410
Howard Lee / Laura Hickman, Gavin Anderson & Co 020 7554 1400
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