Johnson Matthey buys Sweden's Formox

Speciality chemicals group Johnson Matthey said it has completed the purchase of formaldehyde producer Formox for 107m pounds in cash from Perstorp Specialty Chemicals, a company owned by PAI Partners.

Formox provides catalysts, plant designs and licences for the manufacture of chemical intermediate formaldehyde, Johnson Matthey explained in a statement.

"The acquisition enhances our position as a leading supplier of technology for a range of syngas and other chemical processes. The addition of Formox's formaldehyde technology provides exciting opportunities to integrate and expand our technology and catalysts into a broader range of chemical processes," Johnson Matthey said.

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Furthermore, the Swedish firm's expertise in selective oxidation catalysis, a technology that has application in a number of other catalyst areas, is also expected to provide more opportunities for Johnson Matthey to grow its position in the global petrochemicals market.

Commenting on the deal, Johnson Matthey Chief Executive Neil Carson said: "The acquisition of Formox complements our existing technologies for process catalysts, plant design and licensing."

"Formox has a strong position in a growing and profitable market which gives Johnson Matthey new opportunities to grow its sales of catalysts and process technology into the wider petrochemicals market."

CJ