Herbert Smith Freehills has advised global specialty chemicals company Johnson Matthey on its acquisition of the battery materials business of Swiss-based Clariant AG for US$75 million. The transaction, which is expected to complete in 2015, covers all of the assets of Clariant’s Energy Storage business including its manufacturing facility, an R&D centre and a pilot plant in Germany, together with the customer order book and a substantial IP portfolio.

The acquired business is a leading supplier of lithium iron phosphate (LFP) cathode material to the lithium-ion battery sector for both automotive and non-automotive applications. The transaction further strengthens Johnson Matthey’s Battery Technologies business, offering strong synergies and opportunities for growth.  It will also accelerate product development through combining the expertise within Clariant’s battery materials R&D team with the depth and strength in advanced materials within the Johnson Matthey group.

Frankfurt-based corporate partner Nico Abel led the Herbert Smith Freehills team, assisted by Will Arrenberg and Perminder Gainda (tax); Alexander Daehnert, Genevieve Baker and Anne-Marie Lietmeyer (M&A); Moritz Kunz and Simone Gregori (employment).

Nico Abel commented: "We are delighted to have expanded our relationship with Johnson Matthey and for our Frankfurt office to have worked with them on this transaction."