Johnson Matthey, the London-listed speciality chemicals firm, has agreed to acquire US catalyst maker Cormetech for up to $460 million (£343 million). The deal includes an initial payment of $360 million (£269 million) and up to $100 million (£75 million) in additional payments if Cormetech meets specific financial targets.
The acquisition aims to capitalise on surging global demand for data centres, particularly in the US, where Cormetech has a pipeline of projects worth approximately $1 billion (£750 million). The company has already secured $300 million (£224 million) in orders for the next two years, primarily related to data centre emissions control.
The purchase comes shortly after Johnson Matthey agreed to sell its Catalyst Technologies business for £1.3 billion, down from an initial £1.8 billion due to performance adjustments. The sale is pending regulatory approval.
Johnson Matthey's pre-tax profit fell 77% to £91 million in the year to March, though underlying profit rose 11% to £271 million. The company noted that conflict in the Middle East has not yet affected its finances but could impact global demand, supply chains and inflation.
Chief executive Liam Condon said: 'The sale of Catalyst Technologies is on track and the acquisition of Cormetech represents another important milestone in JM's development. Cormetech will materially enhance the scale of clean air solutions and create a global leader in stationary emissions control, including for the rapidly growing data centre market.'
