Latest news with #LiamCondon
Business Mayor
23-05-2025
- Automotive
- Business Mayor
Johnson Matthey sells catalyst and process tech business to Honeywell for £1.8bn
JOHNSON MATTHEY is selling its catalyst technologies business to Honeywell for £1.8bn (US$2.4bn). The catalysts technology business designs and licenses process technologies and designs and makes catalysts for processes used in the energy and chemicals industries. This includes the LCH process licensed for use at the blue hydrogen plants being built by bp in Teesside and EET at Stanlow. The business has around 1,900 employees and is headquartered in London with sites in Europe, India and the US. It will be absorbed into the automation business of Honeywell, which includes the US conglomerate's own process technology unit, UOP. Johnson Matthey has been under pressure to change after its largest investor published an open letter in December attacking the performance of the board running the UK-listed chemicals firm. Once the deal is completed, which is expected in the first half of next year, Johnson Matthey will return £1.4bn from the sale to shareholders. 'Today's announcement represents a significant milestone in the history of Johnson Matthey,' said company CEO Liam Condon. 'We will now fundamentally reshape Johnson Matthey into a more focused and leaner business.' The sale of the catalyst technology business, which saw underlying profits rise 23% to £92m last year, will leave Johnson Matthey with three divisions. The largest is its clean air business that makes emissions control catalysts for cars and has seen profits hold steady at £273m. There is the platinum refining business where profits fell 9% to £149m, and the unprofitable green hydrogen technologies unit that lost £39m. In February, following a slump in demand for its green hydrogen technology components, Johnson Matthey cut its investment in the business to the bone. Honeywell expansion and division Honeywell says the purchase will allow it for the first time to offer customers a comprehensive solution for the production of lower emission fuels including methanol, sustainable aviation fuel (SAF), blue hydrogen and blue ammonia. Honeywell CEO Vimal Kapur said: '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.' In February, Honeywell announced plans to sell its aerospace technologies and speciality chemicals divisions to focus on becoming a standalone automation firm. Speaking then, Kapur said: 'Honeywell Automation will create the buildings and industrial infrastructure of the future, leveraging process technology, software, and AI-enabled, autonomous solutions to drive the next generation of productivity, sustainability, and safety…[it] will be better able to capitalise on the global megatrends underpinning its business, from energy security and sustainability to digitalisation and artificial intelligence.' Since December 2023, it has spent US$11bn acquiring other companies including US$1.8bn on the LNG business of Air Products and US$2.1bn on pump manufacturer Sundyne.
Yahoo
22-05-2025
- Business
- Yahoo
Johnson Matthey Rockets 30% After $2.4B Catalyst Unit Sale to Honeywell (HON)
Johnson Matthey is offloading its catalyst technologies unit to Honeywell (HON, Financials) for 1.8 billion ($2.4 billion), sending shares up over 30% Thursday. Warning! GuruFocus has detected 4 Warning Sign with HON. The British firm expects 1.6 billion in net proceeds and will return most of it88%to shareholders. That's far above earlier analyst estimates, which pegged the unit between 945 million and 1.05 billion. The catalyst unit, tied to sustainable fuel and fertilizers, made up 19% of annual sales. Honeywell plans to fold it into its energy and sustainability division. CEO Liam Condon said earlier offers were minuscule compared to this deal. The sale is part of Johnson Matthey's move to slim down and focus on pollution filters and platinum group metals. Over the past few years, the company has exited battery, glass, and health segments. It reported annual earnings alongside the sale, with core profit slightly ahead of estimates. Check insider trades for JMAT.L. Review Johnson Matthey's Peter Lynch chart. 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
Times
22-05-2025
- Business
- Times
A catalyst at last for Johnson Matthey
That's chemistry for you. Put the right seller and buyer in the test tube and, as if by magic, lots of extra value leaks out. Who knew that simply by selling a business to Honeywell, Johnson Matthey could put 31 per cent on its share price? Not the London market, that's for sure, guilty again of underpricing an asset. Or the group's shareholders, thrilled to see Catalyst Technologies finally live up to its name and bring some spark to Johnson Matthey — even if it entailed it being sold for an eye-popping £1.8 billion. It was, as the chief executive Liam Condon noted, 'a very attractive valuation'. No kidding. Analysts had valued the business at only £945 million. Indeed, few saw this deal coming. Johnson
Yahoo
22-05-2025
- Business
- Yahoo
FTSE giant abandons bet on net zero jet fuel
British chemicals manufacturer Johnson Matthey (JM) has agreed to sell its net zero aviation fuel business for £1.8bn amid weak global demand and pressure from activist shareholders. On Thursday, the FTSE 250 company said it would sell its catalyst technologies division to American rival Honeywell, the sprawling industrial conglomerate. The offloaded division includes the company's interests in biofuels such as sustainable aviation fuel (SAF) and bioethanol, as well as 'blue' hydrogen which is produced using natural gas. SAF has been touted by the aviation industry as the best way to reduce global carbon emissions from flying, but last year demand was just two thirds of what had been predicted. The International Air Transport Association (IATA) has blamed lacklustre demand for SAF, which is more expensive than traditional jet fuel, on 'mixed signals' about its adoption coming from governments around the world. The sale comes as Liam Condon, the Johnson Matthey chief executive, faces pressure from the company's biggest backer, Standard Industries, to rapidly turn around the business. It follows accusations that he and the rest of the board have 'destroyed shareholder value' through poor investments. Demand for SAF has proved disappointing, according to airlines, with the IATA saying that just 1m tonnes was produced last year compared to forecasts of 1.5m tonnes. Mr Condon said: 'We will now fundamentally reshape Johnson Matthey into a more focused and leaner business.' He added: 'JM is a great company and we are confident that the actions we have announced today will deliver substantial and sustainable value to our shareholders.' Airlines claim they are keen to adopt the greener SAF but have been reluctant to pass the costs on to customers through air fares, instead arguing for governments to subsidise production to make the product cheaper. Johnson Matthey said the sale would deliver a large cash boost while leaving the main business more 'streamlined'. The company is holding on to its 'clean air' business, which primarily makes catalytic converters, as well as a platinum metals group division that is working on technologies related to 'green' hydrogen including electrolysers and fuel cells. Johnson Matthey's talks with Honeywell about a potential deal for its catalytic technologies division are understood to have taken place on and off since before Standard joined the shareholder register in 2022, though the deal will still be seen as a defensive measure. It came as the company reported an 11pc drop in sales and virtually flat profits, at £263m for the year to March 31. Johnson Matthey blamed 'challenging' global conditions, including cuts to production by car makers that use its catalytic converters. It also warned of a 'slowdown in the energy transition' which had hit demand for green hydrogen technologies. In the long-term, the company is betting that demand will continue for catalytic converters, primarily from larger vehicles that are difficult to decarbonise, even as governments encourage consumers to switch to electric cars. On Thursday, it said that the internal combustion engine's lifespan also looked longer than previously thought, due to slower-than-expected demand for electric vehicles and government policies that will continue to allow some hybrids to be sold. The company added: 'Over the past three years, we have seen a global slowdown in battery electric vehicle penetration and the regulatory environment has also supported internal combustion engine longevity.' Along with cars, the company said it also saw opportunities in the rapidly growing data centre market, as demand surges for back-up generators which also use catalytic converters, as well as direct air capture of carbon dioxide. Its platinum-based metals business, which refines key materials used in converters, is meanwhile hoping to tap into growing demand for metals recycling and future demand for hydrogen. The division also refines metals for the pharmaceutical, defence and agricultural industries. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Telegraph
22-05-2025
- Business
- Telegraph
British chemicals giant abandons bet on net zero aviation fuel
British chemicals manufacturer Johnson Matthey (JM) has agreed to sell its net zero aviation fuel business for £1.8bn amid weak global demand and pressure from activist shareholders. On Thursday, the FTSE 250 company said it would sell its catalyst technologies division to American rival Honeywell, the sprawling industrial conglomerate. The offloaded division includes the company's interests in biofuels such as sustainable aviation fuel (SAF) and bioethanol, as well as 'blue' hydrogen which is produced using natural gas. SAF has been touted by the aviation industry as the best way to reduce global carbon emissions from flying, but last year demand was just two thirds of what had been predicted. The International Air Transport Association (IATA) has blamed lacklustre demand for SAF, which is more expensive than traditional jet fuel, on 'mixed signals' about its adoption coming from governments around the world. The sale comes as Liam Condon, the Johnson Matthey chief executive, faces pressure from the company's biggest backer, Standard Industries, to rapidly turn around the business. It follows accusations that he and the rest of the board have 'destroyed shareholder value' through poor investments. Demand for SAF has proved disappointing, according to airlines, with the IATA saying that just 1m tonnes was produced last year compared to forecasts of 1.5m tonnes. Mr Condon said: 'We will now fundamentally reshape Johnson Matthey into a more focused and leaner business.' He added: 'JM is a great company and we are confident that the actions we have announced today will deliver substantial and sustainable value to our shareholders.' Airlines claim they are keen to adopt the greener SAF but have been reluctant to pass the costs on to customers through air fares, instead arguing for governments to subsidise production to make the product cheaper. Johnson Matthey said the sale would deliver a large cash boost while leaving the main business more 'streamlined'. The company is holding on to its 'clean air' business, which primarily makes catalytic converters, as well as a platinum metals group division that is working on technologies related to 'green' hydrogen including electrolysers and fuel cells. Johnson Matthey's talks with Honeywell about a potential deal for its catalytic technologies division are understood to have taken place on and off since before Standard joined the shareholder register in 2022, though the deal will still be seen as a defensive measure. It came as the company reported an 11pc drop in sales and virtually flat profits, at £263m for the year to March 31. Johnson Matthey blamed 'challenging' global conditions, including cuts to production by car makers that use its catalytic converters. It also warned of a 'slowdown in the energy transition' which had hit demand for green hydrogen technologies. In the long-term, the company is betting that demand will continue for catalytic converters, primarily from larger vehicles that are difficult to decarbonise, even as governments encourage consumers to switch to electric cars. On Thursday, it said that the internal combustion engine's lifespan also looked longer than previously thought, due to slower-than-expected demand for electric vehicles and government policies that will continue to allow some hybrids to be sold. The company added: 'Over the past three years, we have seen a global slowdown in battery electric vehicle penetration and the regulatory environment has also supported internal combustion engine longevity.' Along with cars, the company said it also saw opportunities in the rapidly growing data centre market, as demand surges for back-up generators which also use catalytic converters, as well as direct air capture of carbon dioxide. Its platinum-based metals business, which refines key materials used in converters, is meanwhile hoping to tap into growing demand for metals recycling and future demand for hydrogen. The division also refines metals for the pharmaceutical, defence and agricultural industries.
