Johnson Matthey has announced the sale of its catalyst technologies business to Honeywell for £1.8 billion (approximately $2.4 billion). This strategic move is part of Johnson Matthey’s efforts to streamline its operations and focus on core areas, while Honeywell aims to enhance its portfolio in sustainable energy solutions.
Key takeaways
- Johnson Matthey sells its catalyst technologies business to Honeywell for £1.8 billion.
- The catalyst business focuses on process technologies and catalysts for the energy and chemicals sectors.
- The deal is expected to close in the first half of 2026, pending regulatory approvals.
- Johnson Matthey plans to return £1.4 billion to shareholders following the sale.
Overview of the transaction
The catalyst technologies business, which employs around 1,900 people and is headquartered in London, designs and manufactures catalysts for various processes, including those used in blue hydrogen production. This sale comes as Johnson Matthey faces pressure from investors to improve its performance and refocus its business strategy.
Liam Condon, CEO of Johnson Matthey, stated, "Today’s announcement represents a significant milestone in the history of Johnson Matthey. We will now fundamentally reshape Johnson Matthey into a more focused and leaner business."
Implications for Johnson Matthey
Following the sale, Johnson Matthey will retain three main divisions:
- Clean Air Business: This division produces emissions control catalysts for vehicles, maintaining steady profits of £273 million.
- Platinum Refining Business: This unit has seen a decline in profits, falling 9% to £149 million.
- Green Hydrogen Technologies Unit: This division has been unprofitable, reporting a loss of £39 million, prompting significant cuts in investment.
The sale of the catalyst business, which reported a 23% increase in underlying profits to £92 million last year, is expected to provide Johnson Matthey with the financial flexibility to focus on its remaining divisions and enhance shareholder value.
Honeywell’s strategic expansion
Honeywell’s acquisition of Johnson Matthey’s catalyst technologies business is a strategic move to broaden its offerings in the energy sector. The integration of this business into Honeywell’s existing Energy and Sustainability Solutions (ESS) segment will enable the company to provide comprehensive solutions for lower-emission fuels, including methanol, sustainable aviation fuel (SAF), blue hydrogen, and blue ammonia.
Vimal Kapur, CEO of Honeywell, remarked, "The acquisition of Johnson Matthey’s Catalyst Technologies business broadens Honeywell’s role as a world-class technology provider of critical energy needed to drive growth into the future." This acquisition aligns with Honeywell’s recent strategy to focus on automation and sustainability, as evidenced by its plans to divest from its aerospace technologies and specialty chemicals divisions.
Future outlook
The transaction is expected to close in the first half of 2026, subject to regulatory approvals. This acquisition is part of Honeywell’s broader strategy to invest in high-growth sectors, having already spent approximately $11 billion on various acquisitions since December 2023.
As both companies navigate this significant transition, the sale marks a pivotal moment for Johnson Matthey as it seeks to redefine its business model while Honeywell positions itself as a leader in sustainable energy solutions.
Sources
- Johnson Matthey sells catalyst and process tech business to Honeywell for £1.8bn – News, The Chemical Engineer.
- Latham Advises Honeywell in Acquisition of Johnson Mattheys Catalyst Technologies Business, Latham & Watkins LLP.
