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Investing.com -- Honeywell (NASDAQ:HON), the US-based industrial conglomerate, is on the verge of finalizing an all-cash transaction to acquire the catalyst technologies division of Johnson Matthey (LON:JMAT), a FTSE 250 chemicals company, according to the Financial Times. The deal is estimated to be worth £1.8 billion ($2.56 billion).
The catalyst technologies unit specializes in the development of catalysts that enhance the efficiency of chemical manufacturing processes. Following the acquisition, this unit will be integrated into Honeywell’s automation division, as per FT, citing individuals familiar with the situation.
Johnson Matthey confirmed on Wednesday that it was engaged in "advanced discussions" regarding a potential sale, although it did not disclose the identity of the prospective buyer. The announcement of the deal is expected to coincide with the company’s annual results on Thursday, according to sources.
Johnson Matthey’s underwhelming performance has made it the focus of an activist campaign led by its largest shareholder, Standard Investments. In December last year, the investment firm penned an open letter to Johnson Matthey’s board, urging it to initiate a strategic review to explore all possible avenues for maximizing shareholder value. This could include a complete or partial sale of the company.
In line with this strategy, Johnson Matthey had previously sold its medical device manufacturing division to private equity group Montagu in the early part of last year.
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