12 February 1998: In a 30 January press statement, Johnson Matthey Plc of the United Kingdom announced that it is acquiring from the Cookson Group, for UK 65 million, the 50% of the glass enamels and …
12 February 1998: In a 30 January press statement, Johnson Matthey Plc of the United Kingdom announced that it is acquiring from the Cookson Group, for UK 65 million, the 50% of the glass enamels and decals firm Cookson Matthey Ceramics (CMC) that it does not already own. Johnson Matthey will also assume responsibility for CMC“s bank borrowing (all short term) which totals UK 67 million. CMC will now become the Ceramic Materials Division of Johnson Matthey, under the management of Mr. Chris Clark, Johnson Matthey“s Chief Operating Officer. The UK“s Cookson Group decided to pull out of the ceramics joint venture with Johnson Matthey in an effort to facilitate its restructuring efforts. CMC was formed as a 50:50 joint venture between the two companies on 1 July 1994. In the preliminary audited results for the year ended 31 December 1997, CMC made an operating profit of UK 20.1 million. After exceptional items (UK 2.6 million) and interest on external bank debt (UK 5 million), the profit was UK 12.5 million. After interest paid on shareholder loans, there was a loss before tax of UK 6.7 million. Net assets at 31 December 1997, before deducting parental loans, were UK 129 million. Johnson Matthey stated that it has acquired full ownership of CMC because it expects CMC to be strongly earnings enhancing over the next financial year, and because single ownership will result in a “slimmer and more responsive management structure” with annual cost savings in administration and other areas in excess of UK 4 million. CMC“s buyers also said that the sale of certain peripheral businesses, which will generate cash to reduce borrowings, is well advanced. Major investment programmes at Johnson Matthey are now complete and the core business is expected to be cash generative going forward. Johnson Matthey also pointed out that key European markets, where CMC has 65% of its sales, are beginning to show signs of recovery.