UK’s Johnson Matthey has agreed to sell its Medical Device Components business to Montagu Private Equity for $700 million or 550 million pounds, on a cash-free, debt-free basis, according to a statement by Johnson Matthey Plc.
The Medical Device Components division specializes in producing components for medical device manufacturers globally, particularly focusing on precious metal alloys and nitinol.
It caters to a worldwide clientele and operates manufacturing facilities in San Diego (USA), Mexicali (Mexico), and Tullamarine (Australia).
Johnson Matthey highlighted that the sale of the Medical Device Components business, coupled with the earlier divestment of the Battery Systems business, fulfills its strategic objective outlined in May 2022.
This concludes the divestment program for its Value Businesses, surpassing the target of 300 million pounds in aggregate net proceeds from divestments.
To distribute the proceeds, Johnson Matthey plans to initiate an on-market share buyback program, returning 250 million pounds to shareholders.
The remaining balance will be allocated towards repaying existing debt and other corporate purposes.
The transaction is anticipated to finalize in the third quarter of 2024.