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Johnson Matthey sells Catalyst Technologies biz to Honeywell for £ 1.8 bn
Industry News- May 22,25
Following this sale, Johnson Matthey will be repositioned as a more focused and efficient business centred on its global Clean Air and Platinum Group Metal Services (PGMS) divisions.
London, 22 May 2025
Johnson Matthey Plc (JM) has signed an agreement to sell its Catalyst Technologies (CT) business to Honeywell International Inc. for an enterprise value of £ 1.8 billion on a cash and debt-free basis. The all-cash transaction is expected to deliver net proceeds of approximately £1.6 billion to JM, with £ 1.4 billion (around 88 per cent of the net amount, or £8 per share) to be returned to shareholders following completion, anticipated in the first half of calendar year 2026.
Following this sale, Johnson Matthey will be repositioned as a more focused and efficient business centred on its global Clean Air and Platinum Group Metal Services (PGMS) divisions. The Group expects this transformation to unlock stronger cash generation and deliver higher ongoing returns to shareholders under a refreshed capital allocation framework.
Strategic highlights of the deal:
- Strong valuation: The sale values CT at 13.3x EBITDA, representing a significant premium to analyst benchmarks and the current JM Group trading multiple.
- Cash return: JM plans to return £ 1.4 billion to shareholders post-completion and maintain annual cash returns of at least £ 130 million in FY2025/26, growing to £ 200 million in FY2026/27 and beyond.
- Core focus: JM will concentrate on Clean Air and PGMS businesses, which operate in durable markets with favourable long-term prospects and are underpinned by the Group’s deep platinum group metals expertise.
- Profit and efficiency gains: The streamlined Group expects at least mid-single digit CAGR in underlying operating profit between FY2024/25 and FY2027/28, with free cash flow projected to reach £ 250 million by FY2027/28.
Chair Patrick Thomas commented, “The sale of Catalyst Technologies and the refreshed Group strategy create a compelling proposition for shareholders, with strong future returns built on core strengths and focus.”
Liam Condon, Chief Executive, added, “This is a pivotal moment in JM’s history. The divestment of CT follows our earlier exit from Medical Devices and allows us to reshape JM into a leaner, more focused business. With leading positions in Clean Air and PGMS, we are well-placed to drive sustainable cash generation and deliver long-term value.”
About Catalyst Technologies and rationale for the sale
CT is a global leader in catalyst supply and process technology licensing, with a robust pipeline of over 150 projects supporting sustainable technologies. The £ 1.8 billion valuation exceeds average analyst expectations of £945m and provides a strong return for shareholders.
Use of proceeds
From the £ 1.6 billion in net proceeds, JM intends to return £ 1.4 billion to shareholders via an appropriate mechanism to be announced before deal closure. The remaining £ 200 million will be retained for general corporate purposes, improving Group leverage ratios to within a targeted range of 1.0x–1.5x net debt to EBITDA.
Financial impact
As of 31 March 2025, CT held £ 1,561 million in gross assets, with EBITDA of £ 119 million and operating profit of £ 92 million. Pro forma adjustments post-transaction suggest JM’s total underlying operating profit for FY2024/25 would be £ 297 million, with total assets at £ 4,633 million and liabilities at £ 2,912 million.
The transaction is classed as a Significant Transaction under the UK Listing Rules but does not require shareholder approval.
Johnson Matthey
Honeywell
Liam Condon
Catalyst Technologies
PGMS
Clean Air
UK industry
industrial transformation
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