MORRISTOWN (dpa-AFX) - Honeywell International Inc. (HON), a publicly traded, conglomerate corporation, on Thursday announced that it has agreed to acquire Johnson Matthey Plc's (JMPLY, JMAT.L) Catalyst Technologies unit for 1.8 billion pounds in cash. The transaction is expected to close in the first half of 2026.
The cash transaction is equal to about 11x estimated 2025 EBITDA, including tax benefits and cost synergies.
The acquisition is expected to boost growth opportunities and deliver cost synergies, and is expected to add to Honeywell's earnings in the first year.
The deal enables Honeywell to offer full-spectrum solutions for producing lower-emission fuels like sustainable methanol, SAF, blue hydrogen, and blue ammonia, supporting energy security and emission reduction.
Johnson Matthey says the transaction is expected to deliver net sale proceeds of c.GBP 1.6 billion to the Group.
Johnson Matthey plans to return 1.4 billion pounds, about 88% of expected net sale proceeds or roughly 8 pounds per share, to shareholders after the deal closes, which is expected in the first half of 2026.
According to Johnson Matthey will sell its Catalyst Technologies business for 1.8 billion pounds on a cash- and debt-free basis, with estimated net proceeds of 1.6 billion pounds after one-off costs.
On Wednesday, Honeywell closed trading, 1.42% down at $221.87 on the Nasdaq. In the after-hours trading, 0.15% higher at $222.20.
On Wednesday, Johnson Matthey closed trading 0.53% lesser at $39.60 on the OTC market.
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