Shareholders’ windfall as Johnson Matthey agrees to sell Medical Device Components business for $700m
The MDC business produces components for medical device manufacturers globally with a focus on precious metal alloys and nitinol. It serves a global customer base and operates manufacturing sites in San Diego, Mexico and Australia.
With this deal and a separate sale of its Battery Systems business, JM has concluded the divestment programme for its Value Businesses originally announced in May 2022 as a key strategic objective. The original divestment value target was £300m so JM has knocked that figure out of the ball park.
The windfall for shareholders from the Montague sale will be conducted through an on-market share buyback programme. The balance will be used to repay some of JM's existing debt and for other general corporate purposes. Subject to regulatory approval the sale is expected to complete around Q3 2024.
Johnson Matthey chief executive Liam Condon, said: “Today's announcement represents a significant milestone in our disposals programme announced in May 2022. As a JM business, MDC has delivered technological differentiation and good growth to the critical health sector. We welcome Montagu's plans to continue the investment and growth plans at MDC.
“We are pleased that this concludes our Value Businesses disposal programme which will deliver benefits to JM shareholders in terms of value realisation, simplification and increased focus on our growth businesses, where JM has a proven ability to win.”
Johnson Matthey is a global leader in sustainable technologies. For over 200 years it has used advanced metals chemistry to tackle the world's biggest challenges.
Many of the world's leading energy, chemicals and automotive companies depend on JM’s technology and expertise to decarbonise, reduce harmful emissions and improve their sustainability.
Montagu is a leading mid-market private equity firm that specialises in carve-out and other first time buyout investments and has deep expertise in five priority sectors: Healthcare, Financial Sector Services, Critical Data, Digital Infrastructure and Education. It partners with companies with enterprise values between €200 million and €1 billion and has €11bn assets under management.
