Johnson Matthey signs definitive agreement to sell its MDC business to Montagu

Johnson Matthey, or JM, announces that it has signed a definitive agreement to sell 100% of its Medical Device Components business, or MDC, to Montagu Private Equity for cash consideration of $700M on a cash free debt free basis. 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 USA, Mexico and Australia. The company said, “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 May 2022 as one of our key strategic objectives. This brings the aggregate net proceeds from the divestment of Value Businesses to significantly more than our target of GBP300M. In line with our stated capital allocation policy, it is the board’s current intention to return to shareholders GBP 250M of the net proceeds of the sale of MDC by way of an on-market share buyback programme. 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.