Matthey agrees to buy ACI
Wednesday 16 August 1995
Johnson Matthey is moving to boost its advanced-materials business with a $170m (pounds 106m) agreed acquisition of Advance Circuits Inc, a US electronic- materials company. The deal is being financed largely by a pounds 117m rights issue, with shareholders being offered one new share at 500p for every eight held.
Analysts' reactions to the deal were generally favourable yesterday. JM's shares ended 1p ahead at 588p.
ACI's main business is making multi-layer printed-circuit boards (PCBs) for equipment ranging from mobile telephones to computers. The company has seen sales grow at a compound rate of close to 13 per cent a year over the past four years, significantly in excess of the 2.8 per cent growth experienced by the market as a whole.
JM believes ACI will benefit from recent industry consolidation. Sales of $144m last year ranked ACI number four in the US PCB market, and number one in the emerging field of plastic packaging for laminated PCBs. "The technology this company has is one of its major attractions to us," said JM director Gordon Thorburn.
He shrugged aside a preliminary investigation into ACI's business being conducted by the US Department of Defense, which accounts for around 20 per cent of its business. Although uncertain of what the investigation concerned, he said that after taking legal advice JM was "satisfied that it was not a material threat to either ACI or Johnson Matthey".
Pre-tax profits were $11.4m in the nine months to May, against $13.9m for the previous year. ACI will boost JM's electronic-materials arm, which has seen profits grow from pounds 2.5m in 1991/92 to pounds 18.8m last year.
The rights issue is being part-underwritten by Minorco, which has an indirect stake of 19.7 per cent in JM.
- 1 I've been called an abusive and dangerous parent, when all I did was listen to my transgender child
- 2 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 3 Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
- 4 The most powerful passports in the world
- 5 Chinese student carries disabled friend to school every day for three years
Nepal earthquake: How you can help victims of the Kathmandu disaster
Nepal earthquake in pictures: Photos show devastation caused by 7.8 magnitude earthquake
Royal baby: Live updates as superbug closes ward at St Mary's Hospital in London where Duchess of Cambridge is due to give birth
Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
General Election 2015: The photo of a tree that proves the Tories have an image problem
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...