LONDON: Johnson Matthey Plc has agreed to sell its Catalyst Technologies business to Honeywell International Inc. for £1.8 billion ($2.3 billion) in an all-cash deal, the British specialty chemicals company announced Tuesday.
The transaction, expected to close in the first half of 2026, will net Johnson Matthey approximately £1.6 billion after adjustments. The company plans to return £1.4 billion, or about 88% of the proceeds, to shareholders.
The sale marks a strategic shift for Johnson Matthey, which will now focus on its Clean Air and Platinum Group Metals Services (PGMS) divisions. The move aims to streamline operations, boost cash flow and deliver higher shareholder returns.
“The sale fully reflects the long-term growth prospects of Catalyst Technologies,” said Patrick Thomas, chair of Johnson Matthey. “This transaction, along with our refined strategy, creates a more focused and disciplined company positioned for strong future returns.”
CEO Liam Condon called the deal a “significant milestone,” noting it follows the recent divestment of the company’s Medical Devices business. “We are reshaping Johnson Matthey into a leaner, more competitive business,” he said.
Honeywell’s acquisition of Catalyst Technologies, a leader in process technology and catalysts, strengthens its sustainable technology portfolio. The deal values the business at 13.3 times its EBITDA, a premium to Johnson Matthey’s current trading multiple.
Post-sale, Johnson Matthey expects to generate at least £250 million in annual free cash flow by fiscal 2028 and increase shareholder returns, targeting at least £200 million per year starting in fiscal 2027.
The transaction is subject to regulatory approvals and customary closing conditions.
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