1st Feb 2006 07:01
Johnson Matthey PLC01 February 2006 For release at 7.00 am Wednesday 1st February 2006 Johnson Matthey Buys Davy Process Technology Johnson Matthey Plc ("Johnson Matthey") announced today that it has purchasedDavy Process Technology Limited ("DPT") for £40 million in cash. DPT develops chemical process technologies and licenses them to customers in theoil, gas, petrochemical, polymer and pharmaceutical industries. Revenue isgenerated through the licensing of its proprietary technologies and from thesale of associated basic engineering packages, catalysts, specialist equipmentand other services. Johnson Matthey and DPT have a long history of technical collaboration and,together with Aker Kvaerner, form the One Synergy alliance which providesturnkey solutions for methanol production and other syngas based processesincluding the emerging gas to liquids (GTL) market. The combination of JohnsonMatthey's process catalyst businesses with DPT will present new opportunities toexploit the research capabilities of both organisations. Johnson Matthey'scatalyst expertise will enhance DPT's ability to develop advanced catalyst basedprocesses for a number of key growth markets and the acquisition will giveJohnson Matthey new opportunities to grow its sales of catalysts into bothexisting and new emerging markets. DPT employs around 175 people and is headquartered in London. It has apurpose-built R&D centre in Stockton-on-Tees. The company has a long history,having been established in the 1830s as a mechanical engineering business andwas part of Trafalgar House before being purchased by Kvaerner in 1996. Morerecently, the business changed hands in 2001 when Yukos bought DPT from AkerKvaerner. Johnson Matthey has acquired DPT from Yukos International UK BV. In the year to 31st December 2005 DPT achieved sales of £33.2 million, EBIT(earnings before interest and taxes) of £5.1 million and EBITDA (earnings beforeinterest, taxes, depreciation and amortisation) of £6.3 million. Johnson Matthey will finance this acquisition out of existing borrowingfacilities. Commenting on the transaction Neil Carson, Chief Executive of Johnson Matthey,said: "The acquisition of Davy Process Technology is a further significant step ingrowing our Process Catalyst and Technologies business. The combination of DPT'sprocess technology and engineering design capabilities with our expertise incatalysis will substantially strengthen our leading position as a catalyst andtechnology supplier to the world's chemical and energy industries." Enquiries: Ian Godwin Director, IR and Corporate Communications 020 7269 8410John Sheldrick Group Finance Director, Johnson Matthey 020 7269 8438Howard Lee The HeadLand Consultancy 020 7367 5225 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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