ICI sells Synetix catalyst business to Johnson Matthey for £260m
23 September 2002 08:47 [Source: ICIS news]
LONDON (CNI)--ICI said Monday it has agreed to sell its catalyst business, Synetix, to Johnson Matthey for £260m ($404m/Euro411m) in cash.
The UK specialty chemicals producer, which put Synetix up for sale at the beginning of this year, said net proceeds after tax and other costs are expected to be about £210m and will be used to reduce debts.
ICI said it expected to complete the transaction in the fourth quarter. The deal is subject to regulatory approval and, in the case of ICI India Limited, to shareholder approval. ICI India will recommend the sale of its catalyst business to its shareholders.
Brendan O'Neill, ICI chief executive, welcomed the sale, declaring that "the agreement represents excellent value for ICI and its shareholders, confirming our expectations when we announced our intent to sell the business."
ICI said the transaction is expected to generate a profit after tax of around £85m which will be accounted for as an exceptional item in the fourth quarter.
Synetix, which had a turnover last year of £146m, specialises in the sale of catalysts and service technologies in edible oils, polymerisation, methanol, ammonia, oil and gas, chemicals, fine chemicals and oleochemicals. The business, which had net operating assets of £109m at the end of last year, has catalyst production facilities in several countries and is headquartered at Billingham in northeast England. It has approximately 800 employees, who will transfer to Johnson Matthey, and about 5000 customers in 85 countries.
UK chemicals and precious metals company Johnson Matthey has been negotiating with ICI over its catalyst business for several months. It said in June that Synetix could be a good fit for its catalyst business.
By: Neil Sinclair
+44 20 8652 3214
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