Honeywell has agreed to acquire the catalyst technologies business division from Johnson Matthey (JM) for £1.8bn in a cash transaction.
This deal is valued at approximately 11 times the estimated 2025 EBITDA, inclusive of tax advantages and anticipated cost synergies.
It aims to integrate Johnson Matthey’s catalyst technologies with Honeywell’s energy and sustainability solutions (ESS) division, enhancing growth prospects and delivering additional benefits through cost efficiencies.
The catalyst technologies business complements Honeywell’s UOP division, which deals in catalyst and process technologies.
This combination will expand Honeywell’s reach in refining and petrochemical catalysts and allow the company to offer an all-encompassing solution for producing low-emission, critical fuels.
These include sustainable methanol, sustainable aviation fuel (SAF), blue hydrogen, and blue ammonia, contributing to energy security and emission reductions. The combined offerings will provide licensed technology, engineering services, and catalysts to convert both hydrocarbon and renewable feedstocks into valuable end products.
Honeywell chairman and CEO Vimal Kapur said: “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 – further strengthening our model of combining process technologies and process automation.
“As demand for diversified sources of energy continues accelerating, we will better enable Honeywell to offer the innovation our customers need.”
Johnson Matthey’s catalyst technologies business is a key player in catalyst manufacturing and process technology licensing. It employs around 1,900 people with headquarters in London, UK, and operations across the US, Europe, and India.
Post-sale, Johnson Matthey will concentrate on its clean air and platinum group metals (PGMS) sectors, aiming for stable cash generation to support shareholder returns. This transaction is expected to bring substantial value to Johnson Matthey shareholders.
Johnson Matthey chief executive Liam Condon said: “Following on from the divestment of our medical devices business at a highly attractive valuation, we have now agreed to the sale of our catalyst technologies business for £1.8bn.
“This allows JM to realise a very attractive valuation for this business that fully reflects its strong long-term growth prospects. We will now fundamentally re-shape Johnson Matthey ‘into a more focused and leaner business.”
The acquisition is projected to enhance Honeywell’s earnings within the first year and introduce new growth avenues for its ESS business.
Honeywell announced this acquisition following plans to spin off its Aerospace Technologies and Advanced Materials businesses, resulting in three publicly traded companies with distinct strategies.
The completion of Honeywell’s acquisition of Johnson Matthey’s catalyst technologies segment is anticipated by the first half of 2026, pending customary closing conditions and regulatory approvals.
