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.”
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