Johnson Matthey to Unveil £1.5bn-Plus Sale Amid Activist Pressure
Johnson Matthey, the London-listed industrial group, is set to announce the sale of its Catalyst Technologies arm, a unit involved in the production of sustainable aviation fuel (SAF), as its board faces pressure from an American activist investor. According to sources, the deal is expected to be worth between £1.5bn and £2bn, which at the upper end would equate to more than 80% of the group’s entire £2.3bn market capitalisation.
The sale, which will be announced as part of Johnson Matthey’s full-year results on Thursday, is seen as a move to appease shareholders who have argued that the company has not been sufficiently focused on higher-growth businesses with more obvious potential to generate financial returns. As Sky News reported earlier, Johnson Matthey has been under siege from Standard Industries, the US-based conglomerate which is its biggest shareholder with a stake of over 10%.
In January, Standard Industries wrote an open letter to Johnson Matthey’s board, accusing it of destroying shareholder value. The letter stated that the company’s directors were guilty of a "continued lack of urgency and incapacity…to do what is necessary to turn Johnson Matthey around and help it to realise its potential". The activist investor’s pressure has clearly had an impact, as Johnson Matthey moves to sell off a significant part of its business.
The Catalyst Technologies arm, which accounted for roughly a fifth of group sales in the half-year to the end of August, but about a third of group profit, is a market leader in supplying specialised services to the chemicals and energy sectors, with a particular focus on decarbonisation. As Sky News understands, the division is also involved in the production of technology needed to make SAF.
The sale of Catalyst Technologies is expected to be welcomed by some shareholders, who have been critical of Johnson Matthey’s strategy. However, the company’s history and reputation as one of Britain’s most significant industrial names, tracing its history back to 1817, mean that the decision to sell off a major part of its business will be closely watched.
A spokesman for Johnson Matthey declined to comment on the sale, but as Sky News reported, the company’s shares have slumped by nearly a quarter over the last year. The sale of Catalyst Technologies is seen as a significant move to address shareholder concerns and restore value to the business.
The identity of the buyer could not be established at the time of writing, but sources close to the deal suggest that it will be a significant player in the industry. As Johnson Matthey announces the sale of its Catalyst Technologies arm, it will be closely watched by shareholders, investors, and industry analysts to see how the company plans to use the proceeds and what the future holds for the business. According to Sky News, the sale is set to be a major talking point in the coming days.
The news of the sale comes as Johnson Matthey faces increased pressure to deliver returns to shareholders. As the company announces its full-year results, investors will be watching closely to see how the sale of Catalyst Technologies will impact the business and what plans the company has to drive growth and profitability in the future. As reported by Sky News, the sale is a significant development in the company’s efforts to address shareholder concerns and restore value to the business.
