Johnson Matthey (LSE:JMAT) announced it will acquire Cormetech, described as a US leader in selective catalytic reduction (SCR) catalysts for stationary power, in a cash deal worth $360m.
Cormetech delivered 2025 sales of $129m and EBITDA of $16m, expects c.$180m sales and c.$35m EBITDA for 2026, operates two US plants with c.350 employees, serves over 400 customers and has an installed base across roughly 2,500 SCR systems.
The deal includes an additional cash earn-out of up to $100m payable in 2028 and 2029 subject to Cormetech meeting disclosed financial performance targets.
Johnson Matthey expects at least $20m of annualised run-rate EBITDA synergies by 2030 (approximately 70% revenue, 30% cost) and cites a secured c.$300m orderbook plus a c.$1bn project pipeline.
The acquisition will be funded from JM's existing debt facilities and sits alongside the planned sale of JM's Catalyst Technologies business to Honeywell and a return of £1bn net proceeds to shareholders. On completion, JM expects pro forma leverage of approximately 1.8x net debt to EBITDA as at 31 March 2027, with de‑leveraging to its 1.0-1.5x target range by 31 March 2029.
"The acquisition of Cormetech is the next step in delivering our strategy of focusing on Johnson Matthey's strengths," said Liam Condon, Chief Executive Officer.
The Transaction is expected to complete at the end of June or in July 2026.
