Johnson Matthey sells gold and silver refining unit to Japan's Asahi

ARE Holdings

15/12/2014 09:17

(Writes through) 
    By Silvia Antonioli 
    Dec 15 (Reuters) - Speciality chemicals firm Johnson Matthey 
 JMAT.L  has agreed to sell its gold and silver refining 
business to Japan's Asahi Holdings Inc  5857.T  for 118 million 
pounds ($186 million) in cash, the British firm said on Monday.  
   
    The business, which employs around 340 people, is a refiner 
of primary and secondary gold and silver, and has plants in Salt 
Lake City in the United States and Brampton in Canada. 
    London-listed Johnson Matthey, the largest producer of 
autocatalysts, said the gold and silver refining unit had sales 
of 44 million pounds in the year to the end of March, and its 
return on sales is typically 25 percent. 
    Johnson Matthey Chief Executive Robert MacLeod said the sale 
was part of its plan to focus on using its expertise in 
chemistry to produce new technologies.    
    "We think this is a sensible move for Johnson Matthey given 
the mid-term outlook for gold and silver prices remains 
unpromising and there are few synergies with the rest if the 
group," said Liberum analyst Adam Collins in a note.  
    "It is a further sign, following the end of the Amplats 
contract, that Johnson Matthey sees itself as an advanced 
materials technology company not a precious metals technology 
company." 
    Anglo American Platinum  AMJ.J  (Amplats), the world's 
largest platinum producer, ended a long-standing sales and 
marketing deal it had with Johnson Matthey last year. 
 
 (Editing by Louise Heavens) 
 ((silvia.antonioli@thomsonreuters.com; +44)(0)(20 7542 1755; 
Reuters Messaging: silvia.antonioli.reuters.com@reuters.net)) 
 
Keywords: JOHNSON MATTHEY M&A/ASAHI HOLDINGS