In a strategic move, Johnson Matthey, a prominent chemicals and technology company, unveiled plans on Wednesday to offload its entire medical device components business to Montagu Private Equity for a staggering $700 million. The deal, orchestrated under the legal guidance of Kirkland & Ellis LLP, marks a significant departure from Johnson Matthey’s “value businesses.”
Johnson Matthey’s Exit Strategy
Johnson Matthey PLC, a key player listed on the London Stock Exchange, declared its intention to funnel £250 million ($317.4 million) back to its shareholders through a well-structured share buyback program. This move underscores the company’s commitment to streamlining its operations and focusing on burgeoning growth opportunities.
Strategic Legal Counsel
Kirkland & Ellis LLP, in collaboration with Slaughter and May, facilitated the legal intricacies of this groundbreaking transaction. The move underscores Montagu Private Equity’s strategic intent to bolster its portfolio in the medical components sector.
Montagu To Buy $700M Medical Component Biz : CEO’s Vision
Liam Condon, Johnson Matthey’s CEO, hailed the sale as a pivotal moment in the company’s divestment strategy, initiated back in May 2022. Condon emphasized that this shift enables Johnson Matthey to sharpen its focus on high-potential growth avenues, leveraging its proven expertise.
Montagu’s Strategic Leap
Montagu’s acquisition encompasses a global business footprint, specializing in the production of medical device components. These components, crafted from precious metal alloys and nitinol, cater to the critical healthcare sector and are manufactured across sites in San Diego, Mexico, and Australia.
Financial Dynamics
Goldman Sachs International played a pivotal role as the exclusive financial adviser to Johnson Matthey throughout the negotiation process. The sale of the medical device components business is expected to bolster Johnson Matthey’s financial standing, with proceeds surpassing the £300 million target.
Montagu To Buy $700M Medical Component Biz : Anticipated Closure
The deal is slated for completion by September, contingent upon regulatory approvals. Johnson Matthey plans to utilize the sale proceeds to trim its debt obligations and fuel future growth initiatives, reaffirming its commitment to long-term sustainability.
