Honeywell announced that it has agreed to buy Johnson Matthey’s Catalyst Technologies business segment for £1.8 billion in an all-cash deal. This represents about 11 times the estimated 2025 EBITDA, inclusive of tax benefits and run-rate cost synergies.
The combination of Johnson Matthey’s Catalyst Technologies business with Honeywell’s Energy and Sustainability Solutions (ESS) business segment is expected to deliver better high-growth vectors to the portfolio and significant additional benefits through cost synergies.
Johnson Matthey’s Catalyst Technologies’ business model synergizes with Honeywell’s existing UOP business of selling catalyst and process technologies, expanding its installed base across refining and petrochemical catalysts. And with an expanded portfolio, Honeywell will for the first time be able to offer customers a comprehensive solution for the production of lower-emission, critical fuels, including sustainable methanol, sustainable aviation fuel (SAF), blue hydrogen, and blue ammonia, which enhance energy security and reduce emissions. The resulting offerings will offer licensed technology, engineering, services, and catalysts to convert hydrocarbon and renewable feedstocks to high-value end products.
Johnson Matthey’s Catalyst Technologies business is a leading provider of catalyst manufacturing and process technology licensing. And it has about 1,900 employees and is headquartered in London, United Kingdom, with sites in the U.S., Europe and India.
The acquisition is expected to be accretive to earnings in the first year and will add attractive high-growth vectors to Honeywell’s ESS business. This acquisition follows Honeywell’s announcement of the planned spin-off of its Aerospace Technologies business and the planned spin-off of its Advanced Materials business, resulting in three publicly listed industry leaders with distinct strategies and growth drivers.
Since December 2023, Honeywell has announced several strategic actions to drive organic growth and simplify its portfolio, including about $11 billion of accretive acquisitions recently closed or announced: the Access Solutions business from Carrier Global, Civitanavi Systems, CAES Systems, the LNG business from Air Products, and Sundyne. And Honeywell agreed to divest its Personal Protective Equipment business, which is expected to close in Q2 2025. Honeywell remains on pace to exceed its commitment to deploy at least $25 billion toward high-return capital expenditures, dividends, opportunistic share purchases, and accretive acquisitions through 2025.
Honeywell’s acquisition of Johnson Matthey’s Catalyst Technologies business segment is expected to close by the first half of 2026, subject to customary closing conditions, including receipt of certain regulatory approvals.
KEY QUOTES:
“The acquisition of Johnson Matthey’s Catalyst Technologies business broadens Honeywell’s role as a world-class technology provider of critical energy needed to drive growth into the future – further strengthening our model of combining process technologies and process automation. As demand for diversified sources of energy continues accelerating, we will better enable Honeywell to offer the innovation our customers need.”
Vimal Kapur, Chairman and CEO of Honeywell
“As we continue to expand and evolve our ESS portfolio, acquiring Johnson Matthey’s Catalyst Technologies business will provide our customers a comprehensive and cost-effective approach to transition their businesses to high-value products with lower emissions. Together, we will be able to create an integrated solution while also diversifying our UOP projects and service offerings to help our customers around the world continue innovating and driving energy security for the future.”
Ken West, President and CEO of Honeywell’s ESS segment
