Dive Brief:
- Johnson Matthey, a U.K.-based company focused on metals chemistry, will sell its medical device components business to Montagu Private Equity for $700 million in cash.
- The segment makes components for medical devices, including nitinol metal tubing used in stents and metallic coatings.
- The sale, announced Wednesday, is expected to close in the third quarter following regulatory approval.
Dive Insight:
Johnson Matthey’s sale of the medical device components business is part of a broader restructuring that began in 2022. The business operates manufacturing sites in San Diego, Mexico and Australia, making components sold to global customers.
It’s part of a broader segment that brought in 470 million euros in sales in Johnson Matthey’s 2023 fiscal year. That segment, called value businesses, included medical device components, battery systems, diagnostic services and advanced glass technologies, which have been sold or are in the process.
Johnson Matthey CEO Liam Condon said Montagu plans to continue investment and growth plans set out for the medical device components business. The company plans to use the proceeds of the sale to pay down its debt and for other general corporate purposes.