Johnson Matthey Sells Medical Metal Unit to Montagu in $700M Deal

Johnson Matthey, a British corporation specializing in metals and chemicals, is preparing to divest its global Medical Device Components (MDC) division, which encompasses manufacturing facilities in the United States, Mexico, and Australia. The transaction, valued at £550 million (approximately $700 million USD), will result in the transfer of ownership to Montagu Private Equity. This strategic decision follows recent moves by Johnson Matthey, including the separation of Cook Medical’s biotech unit in January, which subsequently merged with RTI Surgical.

Following the completion of the transaction, MDC will operate autonomously under its current management, overseen by Montagu. Don Freeman, MDC’s chief, expressed confidence in the partnership with Montagu, highlighting their expertise in healthcare and shared vision for the company’s growth through both organic expansion and mergers and acquisitions.
MDC specializes in the production of intricate hardware components, including micromachined and wire parts made from various metals such as nitinol alloys, platinum, titanium, and other precious materials. These components are essential in the manufacturing of medical devices such as catheter electrodes, stents, heart valves, pacemakers, neuromodulation devices, cochlear implants, and orthopedic implants. Notably, MDC contributed £93 million in revenue to Johnson Matthey for the fiscal year ending March 31, 2023.
The divestiture of MDC aligns with Johnson Matthey’s strategic realignment, which prioritizes core businesses such as clean air equipment, platinum metals services, catalyst manufacturing, and hydrogen fuel cell technologies. Montagu Partner Adrien Sassi highlighted MDC’s unique capabilities and expressed confidence in its growth potential under Montagu’s ownership.

This divestiture is part of Johnson Matthey’s broader restructuring initiative, initiated in 2022, with the aim of optimizing operations and portfolio management. In the 2023 fiscal year, the MDC division, along with other value businesses such as battery systems, diagnostic services, and advanced glass technologies, collectively generated 470 million euros in sales. CEO Liam Condon reiterated Montagu’s commitment to sustaining MDC’s growth trajectory, revealing plans to utilize the sale proceeds for debt reduction and to support corporate objectives.