Mid-market private equity firm Montagu Private Equity (Montagu) has agreed a deal to acquire Johnson Matthey’s (JM) Medical Device Components business (MDC) for a cash consideration of $700m (£550m) on a cash-free, debt-free basis.
The MDC business produces components for medical device manufacturers globally with a focus on precious metal alloys and nitinol, serving a global customer base from manufacturing sites in the USA (San Diego), Mexico (Mexicali), and Australia (Tullamarine).
With the sale of MDC, and a separate sale of its Battery Systems business, JM has now concluded the divestment programme for its Value Businesses that was originally announced in May 2022 as one of the company’s key strategic objectives with aggregate net proceeds significantly surpassing the company’s $300m target.
In a press statement, JM said: “In line with our stated capital allocation policy, it is the board’s current intention to return to shareholders £250m of the net proceeds of the sale of MDC by way of an on-market share buyback programme (conditional upon completion). The balance of the net proceeds will be used to repay some of JM’s existing debt and for other general corporate purposes.”
The sale proceeds will be payable in cash at completion, which is subject to regulatory approval. The transaction is expected to complete around Q3 2024.
