LONDON, UK: Johnson Matthey (JM) today announced the sale of Diagnostic Services, a business providing specialised detection, diagnostic, and measurement solutions.

Diagnostic Services is a part of JM’s Value Businesses and has been identified as non-core to JM’s growth strategy.

Diagnostic Services will be sold to Sullivan Street Partners, a UK based Europeanmid-market private equity investor that has partnered with long term investor, Souter Investments, a Scottish based private family investment office, for £55 million.

Sale proceeds are payable in cash at completion which is subject to customary completion conditions. Completion is expected in the third quarter of calendar 2023.

In the year ending 31st March 2022, Diagnostic Services reported external sales of £55 million, operating profit of £4 million and net assets of £35 million. A small accounting loss on sale is expected.

The divestment of Diagnostic Services is another transaction which progresses the delivery of one of JM’s strategic milestone commitments, to complete the divestment of Value Businesses by 31st March 2024.

Completion expected in the third quarter of 2023.

Execution of the divestment programme is on track to deliver targeted proceeds of at least £300 million by 31st March 2024.

Founded in 2010, Sullivan Street Partners focuses on primary lower mid-market buyouts, taking an operationally intensive and risk-pricing approach to complex situations in the UK and Ireland. The firm operates across various sectors including industrials, consumer, healthcare, business services, facilities management, and financial services.

Sullivan Street Partners plays an active role in its portfolio companies and has a strong track record of operational improvement in the businesses it backs. Sullivan Street typically takes ownership or controlling stakes in companies through investing £20m to £50m of equity.

Trackwise Designs has launched the sale process for the Stevenage Circuits Limited

Johnson Matthey building £80mn hydrogen fuel cell gigafactory in UK