Honeywell to acquire Johnson Matthey's Catalyst Technologies unit for $2.4 billion

Johnson Matthey has agreed to sell its Catalyst Technologies business to US industrial giant Honeywell for $2.4 billion, marking a significant restructuring of the British chemicals company.

The firm will return $1.88 billion to shareholders following completion of the deal, equivalent to around $10.7 per share, representing 88% of the expected net proceeds. The transaction is anticipated to close in the first half of 2026, subject to regulatory approvals.

The sale price represents a transaction multiple of 13.3 times EBITDA and significantly exceeds the average analyst valuation of $1.27 billion for the division. Johnson Matthey's shares have been trading at a much lower multiple of 5.7 times EBITDA.

Following the disposal, Johnson Matthey will focus on its Clean Air and PGMS businesses, where it maintains leading market positions underpinned by deep expertise in platinum group metals.

Chief Executive Liam Condon described the announcement as “a significant milestone" that would, "fundamentally reshape Johnson Matthey into a more focused and leaner business." The company expects to generate at least $335 million in free cash flow by 2028.

The Catalyst Technologies business, which licenses process technology and supplies catalysts globally, has developed a pipeline of over 150 projects in sustainable technologies as industries transition towards net zero emissions.

After transaction costs of around $268 million, Johnson Matthey will retain approximately $268 million for general corporate purposes. The deal follows the earlier divestment of the company's Medical Devices business as part of its strategic refocusing.