The chemicals and technologies company said on Wednesday that private equity company Montagu would buy the unit, which has factories in three countries, for 700 million US dollars (£550 million)
Johnson Matthey has agreed to sell its medical device components (MDC) unit for £550 million as part of itas plan to streamline the company.
The chemicals and technology company said on Wednesday that Montagu, a private equity firm, will buy this part of the business which has factories in three different countries. MDC makes parts for medical companies.
Their boss, Don Freeman, said: “We are delighted to be partnering with Montagu in the next phase of MDC’s development. They bring a significant amount of expertise in healthcare and in particular IP-led (intellectual property) medical devices, and they share our ambitions for the business over the coming years, both organically and through M&A (mergers and acquisitions).”
MDC runs manufacturing sites in the US, Mexico, and Australia. Montagu used to be part of Midlands Bank, now HSBC, about 50 years ago. It has assets worth about 11 billion euro (£9.4 billion). It also owns Janes, a defence information company, Dignity the funeral business, Marlow Foods which makes Quorn, the University of Law, and many others.
Montagu partner Adrien Sassi, said: “The carve-out of MDC aligns strongly with Montagu’s approach. MDC has rare and hard-to-replicate capabilities that enable it to handle the most complex and demanding precision-engineered components at scale.
“With support from Johnson Matthey, Don and his team have positioned the business to capitalise on the fast growth of its underlying markets and blue-chip OEM (original equipment manufacturer) customers. We look forward to supporting their ambitious expansion plans.”
