BY Fraser Tennant
In a move that expands its portfolio of catalyst and process technologies, US industrial tech firm Honeywell is to acquire UK chemical company Johnson Matthey's (JM’s) catalyst unit in an all-cash transaction valued at $2.4bn
The combination of JM's catalyst technologies (CT) business with Honeywell's energy and sustainability solutions (ESS) business segment is expected to add attractive high growth vectors to the portfolio and drive significant additional benefits through cost synergies.
The acquisition follows Honeywell's announcement of the planned spin-off of its aerospace technologies business along with the planned spin-off of its advanced materials business, which will result in three publicly listed industry leaders with distinct strategies and growth drivers.
A Fortune 500 company that invents and manufactures technologies to address tough challenges linked to global macrotrends such as safety, security and energy, Honeywell has approximately 110,000 employees worldwide, including more than 19,000 engineers and scientists.
“The acquisition of JM’s CT business broadens Honeywell’s role as a world-class technology provider of critical energy needed to drive growth into the future – further strengthening our model of combining process technologies and process automation,” said Vimal Kapur, chairman and chief executive of Honeywell. “As demand for diversified sources of energy continues accelerating, we will better enable Honeywell to offer the innovation our customers need.”
JM’s catalyst technologies business segment is a leading provider of catalyst manufacturing and process technology licensing. It has approximately 1900 employees and is headquartered in London, with sites in the US, Europe and India.
Following the sale of CT, JM will be repositioned as a highly streamlined group focused on clean air and platinum group metals, 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.
The boards of directors of both companies unanimously approved the transaction.
“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,” said Patrick Thomas, chair of JM. “This transaction realises significant value for shareholders, creating a group with the core strengths, focus and discipline to deliver strong returns for shareholders into the future.”
The transaction is subject to customary conditions, including the receipt of certain customary regulatory approvals, and is expected to close by the first half of 2026.
Ken West, president and chief executive of Honeywell’s ESS segment, concluded: “Together, we will be able to create an integrated solution while also diversifying our projects and service offerings to help our customers around the world continue innovating and driving energy security for the future.”
News: Johnson Matthey soars on $2.4 billion unit sale to Honeywell