Johnson Matthey Agrees to Sell Catalyst Division to Honeywell for $1.8 Billion

• The sale price was reduced by £470 million (approximately 26%) from the original agreement of £1.8 billion to £1.33 billion
• Honeywell is acquiring Johnson Matthey's catalyst technologies division, a key business unit in the chemicals sector
• The transaction value in US dollars is $1.80 billion at the current exchange rate of $1 = £0.7393

Summary

Transaction Details:

UK-based chemicals company Johnson Matthey has agreed to sell its catalyst technologies business to Honeywell for £1.33 billion ($1.80 billion). Notably, this represents a significant price reduction from the previously agreed value of £1.8 billion—a decrease of approximately £470 million or 26%.

Companies Involved:

• Johnson Matthey (UK): Seller, a chemicals company divesting its catalyst technologies division
• Honeywell: Acquirer, expanding its industrial portfolio through this acquisition

Key Figures:

• Final sale price: £1.33 billion ($1.80 billion)
• Original agreed price: £1.8 billion
• Price reduction: £470 million (~26% decrease)
• Exchange rate: $1 = £0.7393

Market Implications:

The substantial price cut suggests either deteriorating business conditions in the catalyst technologies sector, revised due diligence findings, or shifting market dynamics since the original agreement. For Johnson Matthey, this divestiture likely represents a strategic refocusing of its business portfolio, though at a lower-than-expected valuation. For Honeywell, the reduced price may indicate a more favorable acquisition opportunity, potentially enhancing returns on the investment.

The transaction continues the trend of portfolio rationalization among industrial chemical companies, with firms divesting non-core assets to streamline operations. The deal's completion will provide Johnson Matthey with significant capital for debt reduction or reinvestment, while bolstering Honeywell's position in the catalyst technologies market.

Timeline: Deal announced February 23, 2026 (per article metadata).