- Johnson Matthey sells up to private equity firm Montagu
- Shares up over 8% to £18.44
- Plans to return £250 million net proceeds to shareholders
Shares in Johnson Matthey (JMAT) were up over 8% to £18.44 in morning trading as the specialty chemicals company said it was selling its medical device and components business to private equity firm Montagu for $700 million.
Separately the company also announced the sale of its battery systems business.
The medical device and components business produces components for medical device manufacturers with a focus on precious metal alloys and nitinol.
Last September the speciality chemicals company sold its diagnostic services business for £55 million to JM and Sullivan Street Partners.
Johnson Matthey shares are up 10% year-to-date.
Liam Condon, CEO of Johnson Matthey said: ‘Today’s announcement represents a significant milestone in our disposals programme announced in May 2022.
‘We are pleased that this concludes our value businesses disposal programme which will deliver benefits to Johnson Matthey shareholders in terms of value realisation, simplification and increased focus on our growth businesses.’
SHAREHOLDER VALUE
The company is hoping to return to shareholders ‘£250 million of the net proceeds’ of the sale of the medical device and components business ‘by way of an on-market share buyback programme.’
The sale proceeds will be payable in cash on completion which is subject to regulatory approval. The transaction is expected to be completed around the third quarter of 2024.
