Johnson Matthey has begun a deal to sell its Medical Device Components (MDC) business to Montagu Private Equity for $700 million cash consideration.
 
The company’s MDC business produces components for medical device manufacturers globally, with emphasis on precious metal alloys and nitinol. The business has a global customer based and manufacturing sites in the U.S. (San Diego), Mexico (Mexicali), and Australia (Tullamarine).
 
The company also revealed a separate sale of its Battery Systems business, concluding a divestment program for its Value Businesses first announced in May 2022. Johnson Matthey said the aggregate net proceeds from divestment of the businesses surmounted its £300 million target by a vast margin.
 
The company’s board intends to return £250 million of the MDC sale’s proceeds to shareholders via an on-market share buyback program. The net proceeds balance, the company said, will be used to repay some of the company’s debt and for other corporate purposes.
 
The transaction is expected to be completed around Q3 2024.
 
“Today’s announcement represents a significant milestone in our disposals program announced in May 2022,” said Johnson Matthey CEO Lian Condon. “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. We are pleased that this concludes our Value Businesses disposal program which will deliver benefits to JM shareholders in terms of value realization, simplification and increased focus on our growth businesses, where JM has a proven ability to win.”