Johnson Matthey PLC Johnson Matthey sale of Medical Device Components
March 20 2024 - 2:00AM
RNS Regulatory News
RNS Number : 5019H
Johnson Matthey PLC
20 March 2024
Johnson Matthey signs agreement to
sell its Medical Device Components business for US$700m
20th March 2024
Johnson
Matthey Plc
This
announcement contains inside information
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Johnson Matthey Plc (JM) announces
that it has signed a definitive agreement to sell 100% of its
Medical Device Components business (MDC) to Montagu
Private Equity (Montagu) for cash
consideration of US$700 million (£550 million) on a cash free debt free basis.
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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 (San Diego),
Mexico (Mexicali), and Australia (Tullamarine).
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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 £300 million.
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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.
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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.
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Liam Condon, Chief Executive, Johnson Matthey,
commented:
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Today's announcement represents a significant
milestone in our disposals programme announced in May 2022. As a JM
business, MDC has delivered technological differentiation and good
growth to the critical health sector. We welcome Montagu's plans to
continue the investment and growth plans at MDC.
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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.
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About Johnson Matthey:
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Johnson Matthey is a global leader
in sustainable technologies. For over 200 years we've used advanced
metals chemistry to tackle the world's biggest challenges. Many of
the world's leading energy, chemicals and automotive companies
depend on our technology and expertise to decarbonise, reduce
harmful emissions and improve their sustainability. And now, as the
world faces the challenges of climate change, energy supply and
resource scarcity, we're actively providing solutions for our
customers. Through inspiring science and continued innovation,
we're catalysing the net zero transition for millions of people
every day.
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About Montagu:
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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 €200 million and €1 billion and has €11bn
assets under management.
For additional information on
Montagu, visit www.montagu.com
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The person responsible for the
release of this announcement is Simon Price, General Counsel and
Company Secretary of Johnson Matthey Plc.
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Goldman Sachs International acted as
exclusive financial adviser to Johnson Matthey on this
transaction.
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ENDS
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Enquiries:
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Investor Relations
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Martin Dunwoodie
Louise Curran
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Director of Investor Relations and
Treasury
Head of Investor Relations
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+44 20 7269 8241
+44 20 7269 8235
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Media
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Barney Wyld
Harry Cameron
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Group Corporate Affairs Director
Tulchan Communications
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+44 20 7269 8001
+44 7799 152148
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Notes:
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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.
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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.
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This transaction constitutes a Class
2 transaction for Johnson Matthey under the UK Listing
Rules.
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The gross assets that are the
subject of this transaction amounted to £60 million as at
30th September 2023. For the financial year ended
31st March 2023, these assets generated reported profit
before tax of
£17 million.
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Proceeds after tax and divestment
costs for the disposal of MDC are expected to be c.£450
million.
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Johnson Matthey Plc is listed on the
London Stock Exchange (JMAT)
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Registered
in England & Wales number:
00033774
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Legal Entity Identifier number:
2138001AVBSD1HSC6Z10
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