Suppliers news: Johnson Matthey, Cabo, BSIC, Apollo Safety

Johnson Matthey sells gold and silver refining business

Diversified high-tech services and equipment firm Johnson Matthey (LSE: JMAT) is selling its gold and silver refining business for US$186 million in cash to Asahi Holdings, a Japan-based collector, refiner and recycler of precious and rare metals from waste materials.

The transaction is expected to be completed by the end of March 2015.

Johnson Matthey’s gold- and silver-refining business refines primary and secondary gold and silver materials. It serves customers globally from refineries in Salt Lake City, Utah and Brampton, Ont. The business also provides investment casting services from a third facility in St. Catharines, Ont. In total, the business employs 340 people.

In the financial year ended March 31, 2014 the business division’s sales, excluding the value of precious metals, totalled US$69 million, and for the six months ended Sept. 30, 2014, its sales were US$30 million. Its return on sales is typically 25%.

Commenting on the transaction, Robert MacLeod, CEO of Johnson Matthey, said the sale “is in line with our long-term strategy to focus on areas where we can use our expertise in chemistry and its applications to deliver high technology solutions, or that provide a strategic service to the wider Johnson Matthey group.”

Cabo to buy Worldwide EnviroChem

In a move to broaden its scope, Cabo Drilling (TSXV: CBE; US-OTC: CBEEF) is buying Worldwide EnviroChem for $870,000 and changing its name to Cabo Infrastructure.

“This is the first in a series of anticipated strategic acquisitions in the infrastructure services industry that Cabo intends to initiate, Cabo’s president and CEO John Versfelt said. “We are committed to expanding the mining services that we presently offer to the road building and concrete construction sectors.”

Under the deal Cabo will assume an existing debt of $125,000 and deliver 14.9 million shares, valued at 5¢ apiece, to the seller.

“As [Worldwide’s] current activities are centralized in Panama, our transition into the immediate infrastructure opportunities in Central and South America will blend nicely with Cabo’s existing operations in Panama and Colombia,” Versfelt said.

Cabo adds that the deal gives it the exclusive rights to distribute the proprietary RoadMaster and BondMaster product lines used in road building and waterproofing of underground and water exposed concrete, to road contractors, precast concrete manufacturers, concrete contractors and ready-mix suppliers throughout North, Central and South America, excluding Chile, but including the Caribbean, plus Southern Africa, including South Africa, Namibia, Botswana, Zambia and Malawi.

Cabo also announced that it has reorganized its drilling operations in Canada to reduce costs. Cabo Drilling (Ontario) is now the firm’s central drilling operation, with branches in Surrey, B.C., and Springdale, N.L. In early 2014 the company closed its Forages Cabo division located in Montreal, Que.

Based in New Westminster, B.C., Cabo has a presence in six countries and over 175 employees.

Bulk Solids Innovation Center attracting donations

Kansas State University has announced that its Bulk Solids Innovation Center (BSIC), currently under construction in Salina, Kan., has amassed US$2.4 million in equipment donations.

The 13,000-sq.-foot facility will facilitate the study and development of bulk solids materials handling. Bulk solids are loose, dry commodities like minerals, sugar, pigments and recycled plastics, which account for more than 80% of items transported around the world, the university said.

Donations have come from as far away as Germany and include everything from vacuums and valves to silos and air compressors.

BSIC project partners include the Salina Area Chamber of Commerce, Salina Economic Development Corp., U.S. Department of Commerce Economic Development Administration, the state of Kansas and the city of Salina.

Once the centre is built, the university will be the main tenant while two local companies, Coperion K-Tron Salina and Vortex Valves, will also be anchor tenants.

“The research facility will be the only one of its kind in North America,” general manager with Coperion K-Tron Salina Todd Smith said. “These businesses recognize the benefit of this project and want to contribute to something that is paving the way for cutting-edge research.”

The facility is expected to open by April 2015.

Apollo Safety launches mining division

Massachusetts-based gas detection specialist Apollo Safety is creating a mining division to serve the industry.

Apollo says the new business unit will offer a full line of equipment related to gas detection in mines and other underground facilities.

“When you work underground, you go to work knowing there’s a possibility you might not resurface. That’s why it’s critical that these facilities have reliable gas detection monitors placed throughout the underground site,” said John V. Carvalho III, president of Apollo. “Our new mining division will help these mines and other underground facilities select the appropriate system for their needs and make recommendations for a suitable maintenance schedule.”

In addition to equipment, Apollo provides on-site installation, user training and 24-hour service.

“Having gas detection systems in place can only save lives if you know they are working properly. That’s what makes having a maintenance program critical,” Carvalho said. “With our new division, we provide maintenance and monitoring services to actually test gas detection systems so the facility knows that it’s working properly, rather than just assuming all is well.”