Johnson Matthey to buy Argillon
Johnson Matthey announced today that it has signed an agreement to buy Argillon Group for €214 million in cash from Ceramics Luxembourg 2(f) S.à r.l., a company owned by KKR funds.
Argillon Group is an international group specialising in catalysts and advanced ceramic materials. The group currently manufactures and sells a range of products into a number of different industries. Argillon has leading catalyst technology which is used to control the emissions of oxides of nitrogen (NOx). Its products include catalysts for mobile and stationary applications including heavy and medium duty diesel vehicles; stationary diesel engines; marine applications; and coal, oil and gas fired turbines in power stations. It also manufactures and markets a variety of engineered ceramics such as insulators used in power transmission and distribution applications, innovative piezo ceramics used as actuators for the textile machinery and automotive industries as well as alumina components for semi conductors and circuit breakers.
Argillon’s technologies will add to Johnson Matthey’s existing emission control capabilities to meet the increasingly challenging regulations to control harmful NOx emissions. With the increased concern on the effects of poor air quality on human health and the environment, legislation to control NOx emissions will continue to tighten around the world.
In the year to 30th September 2007 Argillon reported sales of €160 million, adjusted EBIT (earnings before interest and taxes) of €19 million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) of €26 million. Net operating assets at 30th September 2007 were €60 million. Argillon employs around 1,500 people and has manufacturing sites in Germany, Poland and Romania.
The transaction is conditional upon regulatory clearance in Germany. 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 Argillon will complement our existing technology for controlling harmful NOx emissions. In the next few years we expect that global concerns about air quality and climate change will mean this technology will be widely used in both mobile and stationary applications around the world.”
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