Honeywell to Acquire Catalyst Business
Honeywell entered into an amended agreement to acquire Johnson Matthey’s Catalyst Technologies business. The acquisition is intended to expand Honeywell's capabilities in industrial AI and digital operations.
- The acquisition price was adjusted to £1.325 billion, a reduction from the initially agreed £1.8 billion. This change reflects the Catalyst Technologies business's recent performance, which included deferred licensing projects and lower profitability in catalyst supply. - The deadline for completing the transaction has been extended to a "long stop date" of July 21, 2026, with a potential further extension to August 21, 2026, to secure any remaining regulatory approvals. - For Honeywell, this deal is intended to expand its portfolio in renewable fuels technology and increase its installed base in the refining and petrochemical industries, creating synergies with its existing Process Automation business. - The acquisition will enhance Honeywell's capabilities in producing lower-emission fuels, including sustainable aviation fuel (SAF), blue hydrogen, and blue ammonia. - Johnson Matthey intends to return approximately £1.0 billion of the proceeds to its shareholders through a combination of a special dividend and a share buyback program. - This sale is part of a strategic shift for Johnson Matthey to streamline its operations and concentrate on its core businesses, such as Clean Air and Platinum Group Metals. - Honeywell anticipates that the acquisition will be accretive to its adjusted earnings per share within the first full year after the deal closes.
