Johnson Matthey Plc (JMPLY) has finalized a deal to sell its Medical Device Components business (MDC) to Montagu Private Equity for $700 million in cash, marking the completion of its Value Businesses divestment program. MDC, specializing in manufacturing components for medical device companies globally, operates across facilities in the United States, Mexico, and Australia, serving an international clientele. This strategic move aligns with Johnson Matthey's commitment to optimizing its portfolio and focusing on areas of historic expertise and growth opportunities within the healthcare sector.
With the MDC sale and the separate divestment of its Battery Systems business, Johnson Matthey has exceeded its targeted proceeds, further emphasizing its dedication to enhancing shareholder value and streamlining operations. A portion of the net proceeds from the MDC sale will be allocated towards initiating an on-market share buyback program, reflecting the company's capital allocation policy, while the remainder will be utilized for debt repayment and general corporate purposes. The transaction, subject to regulatory approvals, is expected to close around the third quarter of 2024, positioning Johnson Matthey for continued growth and success in its core business areas.
