Honeywell Buys Catalyst Technology Business from Johnson Matthey for $2.4 Billion

Published 6 hours agoHON

Honeywell Buys Catalyst Technology Business from Johnson Matthey for $2.4 Billion

Honeywell International has announced plans to acquire Johnson Matthey's Catalyst Technologies division for £1.8 billion, which is about $2.4 billion, including debt. This deal marks a significant move for Honeywell as it looks to expand its presence in the catalyst manufacturing sector. Reuters reported that the transaction is aimed at enhancing Honeywell’s capabilities in key markets, specifically in sustainable aviation fuel and other catalyst-driven products.

The Catalyst Technologies division under Johnson Matthey specializes in creating catalysts that are crucial for producing sustainable aviation fuel, fertilizers, and paints, among other products. For the year ending March 31, this division reported revenues of £728 million, showcasing its financial strength. Moreover, Johnson Matthey expects to net around £1.6 billion from the sale, and plans to return 88% of the proceeds to shareholders, signifying a shareholder-focused strategy in its business operations.

Following the sale, Johnson Matthey will refocus its efforts on core activities like pollution filters for vehicles and processing platinum group metals. Meanwhile, Honeywell plans to integrate this newly acquired business into its existing automation unit and UOP brand, which serves customers in refining and gas processing. This strategic acquisition builds on previous collaborations between the two companies, such as their December 2022 partnership aimed at advancing lower carbon hydrogen solutions.

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