Honeywell to buy Johnson Matthey’s catalyst technology unit

Honeywell International has agreed to purchase Johnson Matthey’s catalyst technologies business for about $2.3 billion. It plans to combine the business with its UOP subsidiary to create a chemical process engineering and catalysis giant.

Johnson Matthey’s catalyst business generated $930 million in sales during the company’s most recent fiscal year. The business specializes in processes related to synthesis gas, a mixture of carbon monoxide and hydrogen, and is a leading provider of technology for making syngas-derived products such as ammonia, methanol, and formaldehyde.

In recent years, the UK-based firm has been applying its know-how to low-carbon chemical production. For instance, it says its autothermal reforming technology for making hydrogen from natural gas can be easily integrated with carbon capture and storage.

Honeywell’s UOP unit had 2024 sales of about $2.6 billion from processes and catalysts for refining and petrochemicals. UOP has a particularly strong position in aromatics and derivatives. It is also active in olefins with its Oleflex propane dehydrogenation technology. In recent years, UOP has added sustainable chemistry technology, such as the Ecofining process it developed with Italian energy company Eni. Ecofining makes diesel and sustainable aviation fuel from waste fats and oils.

Last November, UOP and Johnson Matthey signed an agreement to join forces in Fischer-Tropsch and methanol routes to fuels from feedstocks such as municipal solid waste, residual biomass, and biogas.

“Acquiring Johnson Matthey's Catalyst Technologies business will provide our customers a comprehensive and cost-effective approach to transition their businesses to high-value products with lower emissions," says Ken West, president of Honeywell's Energy and Sustainability Solutions segment, in the company’s announcement of the deal.

Honeywell is in the middle of an ambitious portfolio transformation that includes spinning off its Aerospace Technologies and Advanced Materials businesses. The latter business, which generated $3.8 billion in sales in 2024, makes refrigerants and Spectra ultra-high-molecular-weight polyethylene fiber.

Johnson Matthey has been under pressure to streamline from major shareholder Standard Investments, an affiliate of Standard Industries, which owns the catalyst firm W. R. Grace. In December, Standard Investments called on Johnson Matthey to conduct a strategic review that could include the sale of all or part of itself. Standard didn’t respond to a request for comment on Johnson Matthey’s plan to sell the catalyst business.

With the sale of the catalyst technologies business to Honeywell, Johnson Matthey will be focused on its Clean Air business, which makes vehicle emissions catalysts, and platinum group metal services.

The sale price, Johnson Matthey CEO Liam Condon says in a statement, allows the company “to realise a very attractive valuation for this business that fully reflects its strong long-term growth prospects.”

Nearly 90% of the proceeds from the transaction will be paid out to shareholders. “We would expect a strong positive share price response,” says Jefferies stock analyst Charlie Bentley in a note to clients about the deal.