Johnson Matthey buys Cormetech to ride US data centre building boom

Thu, 28th May 2026 09:26

(Alliance News) - Johnson Matthey PLC on Thursday announced an acquisition that stands to benefit from AI-driven data centre construction in the US, while also reporting annual results in line with recent guidance.

Johnson Matthey shares were down 0.8% to 2,160.00 pence early Thursday in London, giving the FTSE 250 listing a GBP3.63 billion market capitalisation.

Johnson Matthey said it has agreed to buy Cormetech Inc, a Durham, North Carolina-based maker of selective catalytic reduction catalysts, for an enterprise value of USD360 million. An additional earn-out consideration of up to USD100 million may be payable in 2028 and 2029, if Cormetech achieves agreed financial performance targets.

The London-based speciality chemicals company said Cormetech's catalysts provide emissions control for stationary power generation and industrial applications. Founded in 1989, Cormetech reported USD16 million in earnings before interest, tax, depreciation and amortisation for 2025 on USD129 million in sales. It has two factories in the US and about 350 employees.

Ebitda is expected to rise to USD35 million in 2026, Johnson Matthey said, making the acquisition price a 10-times multiple, or 6.5 times including USD20 million in expected run-rate synergies.

Johnson Matthey said Cormetech has a significant market presence in a US power generation market whose growth is being driven by the construction of data centres for artificial intelligence applications.

The acquisition will be added to Johnson Matthey's Clean Air Solutions business. It is expected to be completed in June or July.

Separately, Johnson Matthey said its own pretax profit from continuing operations was GBP91 million in the 12 months that ended March 31, down 77% from GBP403 million the year before. Revenue rose by 14% to GBP12.57 billion from GBP11.02 billion, but in financial 2025, Johnson Matthey booked a GBP482 million profit on disposal of businesses, compared to just GBP5 million in financial 2026.

The company noted that operating profit was in line with previously upgraded guidance. Operating profit from continuing operations fell by 65% to GBP161 million from GBP454 million on a reported basis. However, on an underlying basis, it rose 14% to GBP340 million from GBP299 million.

Johnson Matthey held its full-year dividend unchanged at 77.0p per share.

However, it said the GBP1.33 billion sale of its Catalyst Technologies division is on track to complete by the end of August, and net sale proceeds of GBP1 billion will be returned to shareholders after completion. Johnson Matthey is selling the business to Honeywell International Inc, having in February reduced the price to GBP1.33 billion from the GBP1.80 billion first announced last year.

For financial 2027, Johnson Matthey said it expects low-to-mid single digit percentage growth in underlying operating profit at constant precious metal prices and constant currency, excluding Catalyst Technologies and Cormetech.

The company said it is on track to achieve sustainable free cash flow of at least GBP250 million per year by financial 2028 and to return at least GBP200 million of that per year to shareholders starting in financial 2027.

Chief Executive Officer Liam Condon says: "Cormetech will materially enhance the scale of Clean Air Solutions and create a global leader in stationary emissions control, including for the rapidly growing data centre market. Together with the progress we are making on strengthening our core businesses, we are on track to achieve our medium-term targets and deliver enhanced shareholder returns."

Johnson Matthey also said it has hired Julie Southern to be senior independent director, replacing Barbara Jeremiah, who will leave the board at the company's annual general meeting on July 16. Southern, who will join the board at that time, currently is chair of NXP Semiconductors NV and a non-executive director of Ocado Group PLC.

By Tom Waite, Alliance News editor

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