LONDON (dpa-AFX) - British science and chemicals company Johnson Matthey PLC (JMAT.L) announced Wednesday the sale of its Advanced Glass Technologies or AGT business to Fenzi Holdings SPV S.p.A for 178 million pounds payable in cash on a cash free debt free basis.
The deal price is subject to customary completion accounts adjustments. The company expects a profit on sale in excess of 100 million pounds.
The completion of the sale is anticipated in spring 2022. The deal is subject to works council consultation in the Netherlands and the satisfaction of customary completion conditions with completion expected in spring 2022.
AGT business, a provider of specialist glass enamels and precious metal pastes supplied mainly to the automotive sector, is part of Value Businesses in 'Other Markets' segment. It was previously identified as non-core to Johnson Matthey's growth strategy.
In the year ended March 31, 2021, AGT generated sales excluding precious metals of 66 million pounds, operating profit of 17 million pounds and gross asset of 49 million pounds.
In line with the company's capital allocation framework, the sale proceeds will be returned to shareholders as part of the 200 million pounds share buyback programme commencing in the New Year.
According to Johnson Matthey, the divestment of AGT is consistent with its aim of creating a simpler, more focused portfolio.
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