Honeywell Worldwide Inc. HON on Thursday disclosed that it’ll purchase Johnson Matthey‘s Catalyst Applied sciences division in an all-cash deal valued at 1.8 billion kilos ($2.4 billion).
The acquisition value represents roughly 11 instances the projected 2025 EBITDA, factoring in tax benefits and anticipated value synergies.
By integrating Catalyst Applied sciences with Honeywell’s Vitality and Sustainability Options (ESS) section, the corporate expects to reinforce its portfolio with promising high-growth alternatives and notice substantial further value efficiencies.
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The corporate mentioned that Johnson Matthey’s Catalyst Applied sciences enterprise aligns effectively with Honeywell’s current UOP operations, which concentrate on catalysts and course of applied sciences and can broaden Honeywell’s footprint within the refining and petrochemical catalyst markets.
This acquisition additionally permits Honeywell, for the primary time, to ship an end-to-end answer for producing lower-emission, important fuels similar to sustainable methanol, sustainable aviation gas (SAF), blue hydrogen, and blue ammonia, contributing to each vitality safety and emissions discount.
The expanded choices will embody licensed applied sciences, engineering experience, assist providers, and catalysts for remodeling hydrocarbon and renewable feedstocks into high-value merchandise.
The transaction is predicted to be accomplished by the primary half of 2026, pending commonplace closing circumstances and regulatory approvals.
The acquisition is anticipated to contribute positively to earnings inside the first yr and is predicted to introduce high-growth alternatives to Honeywell’s Vitality and Sustainability Options (ESS) division.
This transfer follows Honeywell’s lately introduced plans to spin off its Aerospace Applied sciences and Superior Supplies companies.
These separations will lead to three impartial, publicly traded firms with a centered technique and distinct progress drivers.
Additionally, the corporate stays on monitor to surpass its aim of allocating a minimum of $25 billion via 2025 throughout high-return investments, dividend funds, selective share repurchases, and strategic acquisitions.
In April, the corporate reported first-quarter income of $9.82 billion, beating the consensus of $9.59 billion, and adjusted EPS was $2.51 (+7% Y/Y), beating the consensus of $2.21.
Honeywell held money and equivalents of about $9.66 billion as of March 31, 2025.
Traders can achieve publicity to the inventory through Themes Transatlantic Protection ETF NATO and Gabelli Business Aerospace and Protection ETF GCAD.
Worth Motion: HON shares are buying and selling increased by 0.13% to $222.17 finally test Thursday.
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