JM to sell its Catalyst Technologies business

Johnson Matthey Plc (JM) says that it has reached an agreement to sell its Catalyst Technologies (CT) business to Honeywell International, Inc. for £1.8 billion ($2.45 billion) on a cash and debt-free basis. The transaction is expected to deliver net sale proceeds of around £1.6 billion ($2.18 billion) to the JM group, subject to customary closing adjustments. Following the sale of CT, JM says that it will be repositioned as a highly streamlined group focused on clean air and platinum group metal sales, supporting the delivery of at least mid-single digit CAGR over the next few years with a material increase in Group cash generation to at least £250 million of Group free cash flow by the 2027-28 financial year, underpinned by growth in underlying operating profit, capex reducing to close to maintenance levels and material working capital benefits.

Patrick Thomas, Chair of Johnson Matthey, said: “On behalf of the board, we are pleased to announce the sale of CT, which, together with the refreshed strategy of the Group, represents a strategically and financially compelling proposition for shareholders. Today’s transaction realises significant value for shareholders, creating a Group with the core strengths, focus and discipline to deliver strong returns for shareholders into the future.”

Liam Condon, Chief Executive of Johnson Matthey, said: “Today’s announcement represents a significant milestone in the history of Johnson Matthey. This allows JM to realise a very attractive valuation for this business that fully reflects its strong long-term growth prospects. We will now fundamentally reshape Johnson Matthey into a more focused and leaner business. This will better position us to leverage our strong capabilities and leading market positions in Clean Air and PGM Services to drive a step change in sustainable cash generation with higher returns to shareholders. JM is a great company and we are confident that the actions we have announced today will deliver substantial and sustainable value to our shareholders.”

JM’s Catalyst Technology division is a global leader in the licensing of process technology and supply of catalysts, with a pipeline of more than 150 projects in its sustainable technologies portfolio that is expected to deliver attractive long-term profitable growth as the world transitions to net zero.