Johnson Matthey Sells Medical Device Components Business to Montagu Private Equity for US$700M

Johnson Matthey has signed a definitive agreement to sell 100% of its Medical Device Components (MDC) business to Montagu Private Equity (Montagu) for a cash consideration of US$700 million (£550 million) on a cash-free, debt-free basis.

The MDC business manufactures components for medical device manufacturers worldwide, with a focus on precious metal alloys and nitinol, with manufacturing facilities in the US (San Diego), Mexico (Mexicali) and Australia (Tullamarine).

With the sale of MDC and a separate sale of the Battery Systems business, Johnson Matthey has completed the divestment programme for its Value Businesses, originally announced in May 2022 as one of its key strategic objectives, bringing the total net proceeds from the divestment of Value Businesses to well over the target of £300 million.

In line with our stated capital allocation policy, it is the board’s current intention to return to shareholders £250 million of the net proceeds of the sale of MDC by way of an on-market share buyback programme (conditional upon completion). The balance of the net proceeds will be used to repay some of JM’s existing debt and for other general corporate purposes.

The proceeds of the sale will be paid in cash on completion, which is subject to regulatory approval. The transaction is expected to close around the third quarter of 2024.

The sale of MDC is an important milestone in our divestment programme announced in May 2022. MDC has brought technological differentiation and good growth to the critical healthcare sector and we welcome Montagu’s plans to continue the investment and growth plans at MDC,” said Liam Condon, Chief Executive of Johnson Matthey.

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