LONDON (dpa-AFX) - Johnson Matthey Plc (JMAT.L) said that it agreed to sell its Medical Device Components business to Montagu Private Equity for cash consideration of US$700 million or 550 million pounds on a cash free debt free basis.
The Medical Device Components business produces components for medical device manufacturers globally with a focus on precious metal alloys and nitinol. The business serves a global customer base and operates manufacturing sites in the USA (San Diego), Mexico (Mexicali), and Australia (Tullamarine).
Johnson Matthey noted that today's announcement of the sale of Medical Device Components, along with the separate sale of Battery Systems business, marks the completion of its divestment program for its Value Businesses, a strategic objective outlined in May 2022. With this, the company has exceeded target of 300 million pounds in aggregate net proceeds from the divestment.
Johnson Matthey plans to return to shareholders 250 million pounds of the net proceeds of the sale of Medical Device Components by way of an on-market share buyback program. The company will use the balance of the net proceeds to repay some of its existing debt and for other general corporate purposes.
The transaction is expected to complete around third quarter 2024.
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