22-05-2025

Johnson Matthey to sell catalyst technologies business to Honeywell International

Johnson Matthey Plc is pleased to announce that it has reached an agreement to sell its Catalyst Technologies business to Honeywell International, Inc. at an enterprise value of £1,800m on a cash and debt-free basis. The Transaction is expected to deliver net sale proceeds of c.£1.6bn to the Group, subject to customary closing adjustments.

Following the sale of CT, JM will be repositioned as a highly streamlined group focused on Clean Air and PGMS, driving sustained strong cash generation to support attractive ongoing returns to shareholders. The sale of CT, together with the compelling investment proposition of JM, are expected to deliver substantial value to JM shareholders.

Key Highlights
* Highly attractive CT sale valuation: enterprise value of £1,800m on a cash and debt-free basis, representing a transaction multiple of 13.3x EBITDA1

* Significant cash return to shareholders: £1.4bn (equivalent to c.88% of expected net sale proceeds and c.£8 per JM share) expected to be returned to shareholders following completion of the Transaction, which is expected by the first half of calendar year 2026

* JM to be repositioned as a highly streamlined group with a compelling investment proposition focused on delivering sustained strong cash generation and attractive ongoing cash returns to shareholders

 - Sustained scale and leadership: Group to be focused on its leading global Clean Air and PGMS businesses, operating in large and durable addressable markets with attractive long-term prospects
 - Deep and longstanding platinum group metals expertise: underpinning JM’s strong commercial advantages and leading positions
 - Operating profit growth: enhanced operating efficiencies as the Group transitions to a more focused and rationalised operating model, supporting the delivery of at least mid-single digit CAGR in pro forma2 Group underlying operating profit from FY2024/25 to FY2027/28
 - Sustained strong cash generation: a material increase in Group cash generation to at least £250m of Group free cash flow by FY2027/28, underpinned by growth in underlying operating profit, capex reducing to close to maintenance levels and material working capital benefits          
 - Higher ongoing returns to shareholders under a refreshed capital allocation framework, in addition to the cash return pursuant to the Transaction: total annual cash returns to shareholders of at least £130m for FY2025/263, growing to at least £200m for FY2026/27 and beyond

* Delivering substantial near, mid and longer-term value for JM shareholders through the sale of CT and continued exposure to the attractive investment proposition of JM

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 resturns 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. Following on from the divestment of our Medical Devices business at a highly attractive valuation, we have now agreed to the sale of our Catalyst Technologies business for £1.8bn. 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 re-shape 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.”