Johnson Matthey to Sell Catalyst Technologies Unit to Honeywell for £1.8bn

Johnson Matthey (LON: JMAT) said Thursday that it has agreed to sell its Catalyst Technologies business to US industrial group Honeywell International for £1.8 billion, as part of a strategic pivot to streamline operations and focus on core divisions.

The deal, expected to close in the first half of 2026, will deliver net proceeds of approximately £1.6 billion, with £1.4 billion earmarked for a cash return to shareholders, equivalent to roughly £8 per share. 

The transaction represents a 13.3x EBITDA multiple for the 2024/25 financial year.

Johnson Matthey shares have surged more than 28% so far on Thursday, trading at their highest level since May 2024.

Post-sale, Johnson Matthey will concentrate on its Clean Air and Platinum Group Metal Services (PGMS) divisions, which it says will drive sustainable cash generation and stronger shareholder returns. 

The company expects to generate at least £250 million in free cash flow by 2027/28 and raise annual shareholder returns to £200 million from 2026/27.

Chief Executive Liam Condon said: “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.”

Johnson Matthey also reported its full-year results for the year ended 31 March 2025 on Thursday. 

Revenue fell 9% to £11.67 billion, while reported operating profit more than doubled to £538 million, buoyed by disposal gains. Underlying operating profit excluding divestments rose 6% to £388 million. Pre-tax profit jumped to £486 million from £164 million.

The company’s full-year dividend was maintained at 77 pence per share.