Latest news with #CatalystTechnologies
Yahoo
4 days ago
- Business
- Yahoo
Up 30% in a day, is this FTSE 250 stock primed for a come back?
There aren't many instances when the share price of a leading FTSE 250 constituent rises by a third at the ringing of the bell. But that's what happened to Johnson Matthey's (LSE: JMAT) stock yesterday (22 May) when it agreed to sell its Catalyst Technologies business to Honeywell in a £1.8bn deal. The business has been in divesting mode since the new CEO took charge back in 2022. It had already sold its battery material and medical device components businesses, but this deal dwarfs them. Having long been relegated from the FTSE 100, could a new streamlined business now be primed for a major comeback? The sale of its Catalyst Technologies business comes as something of a surprise to me. In its 2024 annual report it described it as 'a core growth driver'. So what changed? The simple answer is: pressure from an activist investor. Last January, its largest shareholder Standard Investments launched a scathing attack on the board, accusing it of a 'continued lack of urgency and incapacity' in arresting its poor share price performance. The spat eventually went public after the company responded to the claims in an open letter. To me, the business had simply overstretched itself. The process technology it designed and licenced for the energy and chemicals sectors was way outside its core competencies of Platinum Group Metals (PGM) and catalytic converters. The sale of Catalyst Technologies is great news for shareholders. It sold it on a cash and debt-free basis at a transaction multiple of 13.3 times earnings before interest tax depreciation and amortisation (EBITDA). The cash return to shareholders will be considerable at £1.4bn. This equates to 800p per share and represents 88% of the expected net sale proceeds of £1.6bn. I think the reaction by the market indicates strong approval of the deal. The cutting edge technology is used to create products for transportation fuels, fertilisers, wood products, paints, coatings and polymers. The fact that Honeywell was prepared to pay such a premium highlights the technology's growth potential. It was simply in the wrong hands to realise that potential. After all the divestments, what's left is PGM and Clean Air. The former is a well-established division with number one positions globally. But it's Clean Air that really interests me. A few years ago, its catalytic converters manufacturing hub was seemingly in long-term decline. Not now though. Over the past few years, production of battery electric vehicles has slowed considerably. At the same time, the regulatory environment has softened toward the traditional internal combustion engine (ICE). The company forecasts that globally an additional 19m light-duty ICE vehicles will now be produced between 2027 and 2034. Each will need cutting-edge catalytic converters. Clean Air sales are expected at more than £2bn in 2027/28, with 90% of that business already won. At the moment it feels to me that the business has turned a corner. But I'm not in a rush to buy into the stock just yet. I want to do more research. Yet with the share price nearly half what it was back in 2021 (despite the price rise), it could be one for an investor seeking a long-term recovery play to consider. The post Up 30% in a day, is this FTSE 250 stock primed for a come back? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Andrew Mackie has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Fibre2Fashion
7 days ago
- Business
- Fibre2Fashion
Honeywell US to buy Johnson Matthey's catalyst business for $2.43 bn
Honeywell (NASDAQ: HON) announced that it has agreed to acquire Johnson Matthey's Catalyst Technologies business segment for £1.8 billion (~$2.43 billion) in an all-cash transaction, representing approximately 11x 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 add attractive high growth vectors to the portfolio and drive significant additional benefits through cost synergies. Johnson Matthey's Catalyst Technologies' business model complements Honeywell's existing UOP business of selling catalyst and process technologies and expands its installed base across refining and petrochemical catalysts. In addition, 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 provide licensed technology, engineering, services and catalysts to convert hydrocarbon and renewable feedstocks to high-value end products. Honeywell has agreed to acquire Johnson Matthey's Catalyst Technologies business for £1.8 billion (~$2.43 bn), enhancing its Energy and Sustainability Solutions portfolio. This acquisition will enable Honeywell to offer comprehensive solutions for lower emission fuels like SAF and blue hydrogen. The deal is expected to close by 1H 2026, boosting Honeywell's growth and synergies. "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," said Vimal Kapur, Chairman and CEO of Honeywell . "As demand for diversified sources of energy continues accelerating, we will better enable Honeywell to offer the innovation our customers need." Johnson Matthey's Catalyst Technologies business segment is a leading provider of catalyst manufacturing and process technology licensing. It has approximately 1,900 employees and is headquartered in London, United Kingdom, with sites in the U.S., Europe and India. "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," said Ken West, President and CEO of Honeywell's ESS segment . "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." 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. The acquisition follows Honeywell's announcement of the planned spin-off of its Aerospace Technologies business along with the planned spin-off of its Advanced Materials business, which will result in three publicly listed industry leaders with distinct strategies and growth drivers. Since December 2023, Honeywell has announced a number of strategic actions to drive organic growth and simplify its portfolio, including approximately $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. In addition, Honeywell entered into an agreement 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 1H 2026, subject to customary closing conditions, including receipt of certain regulatory approvals. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. Fibre2Fashion News Desk (MS)
Yahoo
25-05-2025
- Business
- Yahoo
Honeywell strikes $2.4B acquisition deal
Honeywell International Inc. is continuing its aggressive push to expand and reshape its portfolio. The Charlotte-based company said May 22 it reached a deal to acquire U.K.-based Johnson Matthey's Catalyst Technologies business segment for $2.4 billion in cash. The deal will bring that unit into Honeywell's Energy and Sustainability Solutions business. It is expected to close by the first half of 2026. READ: Charlotte councilwoman indicted for COVID fund fraud linked to lavish birthday party Johnson Matthey's Catalyst Technologies business is based in London. It has about 1,900 employees across the U.S., Europe and India. Read more here. WATCH: Charlotte councilwoman indicted for COVID fund fraud linked to lavish birthday party
Yahoo
23-05-2025
- Business
- Yahoo
Honeywell Divests PPE Business, Set to Acquire Catalyst Technologies Unit
Honeywell International Inc. HON has been actively following its business transformation strategy that aims to unlock value for its shareholders. As part of the strategy, the company recently sold its Personal Protective Equipment (PPE) business to Protective Industrial Products, Inc. ('PIP').PIP, a portfolio company of Odyssey Investment Partners, is engaged in manufacturing and distributing PPE products globally. It's worth noting that the transaction was valued at $1.325 billion and was carried out in divestiture will enable Honeywell to focus more on its core businesses and realign its operating segments to three megatrends, which are automation, the future of aviation and energy transition. The company's PPE divestment follows the sale of its Lifestyle and Performance Footwear business in 2021 and allows it to exit the PPE Honeywell declared its plan to acquire Johnson Matthey's Catalyst Technologies business unit for £1.8 billion in cash. Based in London, UK, the Catalyst Technologies business provides catalysts for the chemicals and energy industries with operations in the United States, Europe and inclusion of Johnson Matthey's Catalyst Technologies unit will enable HON to strengthen its UOP business and grow its installed base across the petrochemical and refining catalysts. The buyout will allow Honeywell to provide solutions for the production of low-emission fuels like sustainable aviation fuel, sustainable methanol, blue ammonia and blue hydrogen. HON will incorporate the Catalyst Technologies business into its Energy and Sustainability Solutions (ESS) anticipates the buyout to be accretive to its earnings in the first year, strengthen the ESS segment's growth potential and create cost synergies. Management expects the transaction to be completed in the first half of 2026, conditioned on the fulfillment of certain customary closing conditions. Honeywell currently carries a Zacks Rank #3 (Hold). The company's Aerospace segment is witnessing solid momentum, driven by strength in the defense business and growth in air transport flight hours. Strong demand across the commercial aviation aftermarket business is aiding the segment. Image Source: Zacks Investment Research In the past year, HON stock has gained 12% compared with the industry's 7.9% weakness in the Process solutions business, due to lower demand for smart energy and thermal solutions, has been affecting the Industrial Automation segment's performance. Also, softness in the productivity solutions and services business, owing to lower demand in Europe, remains a concern. Some better-ranked stocks are discussed Inc. ATR presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup's 2025 earnings has increased 5.4%.Federal Signal Corporation FSS currently carries a Zacks Rank #2 (Buy). FSS delivered a trailing four-quarter average earnings surprise of 6.4%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal's 2025 earnings has increased 1.6%.Unifirst Corporation UNF currently carries a Zacks Rank of 2. UNF delivered a trailing four-quarter average earnings surprise of 12.3%. In the past 60 days, the consensus estimate for Unifirst's fiscal 2025 (ending August 2025) earnings has increased 4.1%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honeywell International Inc. (HON) : Free Stock Analysis Report Unifirst Corporation (UNF) : Free Stock Analysis Report AptarGroup, Inc. (ATR) : Free Stock Analysis Report Federal Signal Corporation (FSS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Johnson Matthey PLC (JMPLF) Full Year 2025 Earnings Call Highlights: Strategic Divestment and ...
Revenue: Sales increased by 50% in Catalyst Technologies. Operating Margin: Catalyst Technologies margin improved from 7% to 14%; Clean Air margin increased to almost 12% this year, with expectations to reach mid-teens by year-end. EBITDA: Catalyst Technologies had a GBP30 million EBITDA three years ago. Net Sale Proceeds: GBP1.8 billion from the sale of Catalyst Technologies, with GBP1.6 billion net proceeds after taxes and costs. Shareholder Returns: GBP1.4 billion to be returned to shareholders, equating to GBP8 per share based on the previous day's share price. Net Debt: Reduced to GBP799 million, with a leverage ratio of 1.4 times. Free Cash Flow: Positive free cash flow for the year, with a GBP400 million improvement from the first half to the second half. Dividend: Maintained at 7p, totaling GBP130 million for the year. Clean Air Sales Decline: Sales down 8% due to global automotive production environment. PGM Profitability: Nearly doubled in the second half. Hydrogen Losses: Halved in the second half, moving towards breakeven. CapEx: GBP1.25 billion spent over the last four years, with plans to reduce significantly post-refinery completion. Cash Returns Commitment: GBP200 million annually from '26/'27 onwards. Future Sales Projections: Clean Air sales expected to exceed GBP2 billion by '27/'28; PGM sales projected at GBP450 million by '27/'28. Warning! GuruFocus has detected 6 Warning Signs with JMPLF. Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Johnson Matthey PLC (JMPLF) announced the sale of its Catalyst Technologies business to Honeywell for GBP1.8 billion, a significant valuation compared to previous offers. The company has significantly improved its Clean Air business, increasing margins from 8% to nearly 12%, with expectations to reach 16-18% by 2027/28. Johnson Matthey PLC (JMPLF) plans to return GBP1.4 billion to shareholders from the Catalyst Technologies sale proceeds. The new world-class refinery for Platinum Group Metals (PGM) is on track, expected to enhance cash generation and operational efficiency. The company has committed to delivering GBP200 million in cash returns to shareholders annually from 2026/27 onwards, supported by strong free cash flow projections. The transition to the new PGM refinery will incur additional costs and lower metal recoveries during the commissioning phase, impacting short-term profitability. The hydrogen market has underperformed expectations, leading to asset impairments and a delay in profitability. Clean Air sales have been affected by a decline in global automotive production, impacting revenue growth. The company faces challenges in reducing central costs and stranded costs following the sale of Catalyst Technologies. Johnson Matthey PLC (JMPLF) has experienced a high level of one-off items impacting financial results, including restructuring costs and asset write-downs. Q: Why is the timeline for the completion of the Catalyst Technologies sale set for the first half of 2026, and are there any key regulatory approvals required? A: The timeline is dependent on regulatory approvals, primarily from the US, Europe, and China. Given the minimal overlap between Johnson Matthey and Honeywell's businesses, the process is expected to be straightforward. The timeline has been agreed upon with Honeywell as a reasonable estimate. - Liam Condon, CEO Q: What are the plans for reducing central costs following the sale of Catalyst Technologies? A: Currently, about GBP15 million of central costs are charged to Catalyst Technologies. Post-sale, we aim to reduce these costs by improving processes across all areas, including finance, HR, and IT, to align with the smaller size of the group. - Richard Pike, CFO Q: Why was Hydrogen Technologies not included in the Catalyst Technologies sale to Honeywell? A: Hydrogen Technologies was integrated into Clean Air due to customer overlap and to benefit from shared overheads. This restructuring was necessary as the growth in hydrogen was not as initially forecasted. - Liam Condon, CEO Q: Can you provide an update on the new PGM refinery and how you plan to ensure a smooth transition from the old to the new plant? A: We are still in the construction phase and expect to begin commissioning at the end of this year or early next year. The transition will be gradual, with metal streams being moved one at a time to ensure a smooth start-up. We have extensive plans and expert teams in place to manage this process. - Liam Condon, CEO Q: What is the expected cash impact of the new refinery on PGMS from 2025/26 to 2027/28? A: During the transition, there will be increased depreciation and dual running costs, but these will be offset by the new refinery's efficiency and capacity to process higher volumes and more complex feeds, leading to improved margins and cash flow in the long term. - Richard Pike, CFO Q: Is the GBP250 million free cash flow target for 2027/28 clean, and does it include any net working capital realization? A: Yes, the GBP250 million target is clean free cash flow, excluding any net working capital realization. It reflects normalized profitability with ongoing operational improvements and lower levels of CapEx. - Richard Pike, CFO Q: What are the revenue expectations for Clean Air to achieve the 16% to 18% margin target by 2027/28? A: We expect Clean Air to generate over GBP2 billion in sales by 2027/28, with 90% of this already secured. The focus will be on maintaining high market shares and improving operational efficiency to achieve the margin target. - Anish Taneja, Chief Executive, Clean Air Q: How will the sale of Catalyst Technologies impact Johnson Matthey's strategic focus and financial outlook? A: The sale allows us to focus on our core competencies in PGMS and Clean Air, enhancing our ability to generate cash and commit to shareholder returns. We expect to deliver GBP200 million in cash returns annually from 2026/27 onwards. - Liam Condon, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
