Johnson Matthey signs agreement to sell its Medical Device Components business for US$700m
This announcement contains inside information
The MDC 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
With our sale of MDC announced today and a separate sale of our Battery Systems business, we have concluded the divestment programme for our Value Businesses that was originally announced in
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 sale proceeds will be payable in cash at completion, which is subject to regulatory approval. The transaction is expected to complete around Q3 2024.
"Today's announcement represents a significant milestone in our disposals programme announced in
"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."
About
About Montagu:
Montagu is a leading mid-market private equity firm, committed to finding and growing businesses that make the world work. Focussing on businesses with a must-have product or service in a structurally growing marketplace, Montagu brings proven growth capabilities to help companies achieve their ambitions and unlock their full potential. Montagu 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. ESG forms an integral part of its strategy, and its commitment to responsible investment is fully integrated into its investment and value - creation process. Montagu partners with companies with enterprise values between €20 0 million and €1 billion and has €11bn assets under management.
For additional information on Montagu, visit www.montagu.com
The person responsible for the release of this announcement is
Notes:
- Value Businesses divestment programme set out in
May 2022 as part of the group's strategic milestones includes the sale of Diagnostic Services, Battery Systems and Medical Device Components. - The sale agreement is in respect of the whole of Johnson Matthey's Medical Device Components business, including assets, technology and licences, as well as related assets.
- This transaction constitutes a Class 2 transaction for Johnson Matthey under the
UK Listing Rules. - The gross assets that are the subject of this transaction amounted to £60 million as at
30th September 2023 . For the financial year ended31st March 2023 , these assets generated reported profit before tax of £17 million. - Proceeds after tax and divestment costs for the disposal of MDC are expected to be c.£450 million.
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