Johnson Matthey (LSE:JMAT) has reached an agreement to sell its Catalyst Technologies division to Honeywell (NASDAQ:HON) for an enterprise value of £1.325 billion on a cash- and debt-free basis, the company announced on Monday.
The UK chemicals group intends to return £1 billion of the net proceeds from the disposal to shareholders. The planned capital return will comprise an £800 million special dividend accompanied by a share consolidation, alongside a further £200 million share buyback programme to be executed in the market.
Completion of the transaction is anticipated by the end of August, subject to customary closing conditions and regulatory approvals.
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