Johnson Matthey has agreed to sell 100% of its medical device components (MDC) business to private equity firm Montagu for $700m (£551m) on a cash free debt free basis.

Along with a separate sale of its battery systems business, Johnson Matthey confirmed that it has now concluded a divestment programme that was originally announced in May 2022.

Johnson Matthey, which is headquartered in the UK and listed on the London Stock Exchange, specialises in speciality chemicals and sustainable technologies. Its MDC business produces components for medical device manufacturers with a focus on precious metal alloys and nitinol. The business serves a global customer base and operates manufacturing sites in the US, Mexico, and Australia.

The deal to sell its MDC business to Montagu takes the aggregate net proceeds from the divestment of Johnson Matthey’s value businesses to significantly more than its target of £300m.

Chief executive at Johnson Matthey, Liam Condon, said: “Today's announcement represents a significant milestone in our disposals programme announced in May 2022. As a Johnson Matthey business, MDC has delivered technological differentiation and good growth to the critical health sector. We welcome Montagu's plans to continue the investment and growth plans at MDC.

“We are pleased that this concludes our value businesses disposal programme which will deliver benefits to shareholders in terms of value realisation, simplification and increased focus on our growth businesses.”

The transaction, which remains subject to regulatory approvals, is expected to complete in Q3 2024.

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