Honeywell International Inc. (NASDAQ:HON) on Thursday disclosed that it will acquire Johnson Matthey‘s Catalyst Technologies division in an all-cash deal valued at 1.8 billion pounds ($2.4 billion).
The purchase price represents roughly 11 times the projected 2025 EBITDA, factoring in tax advantages and anticipated cost synergies.
By integrating Catalyst Technologies with Honeywell’s Energy and Sustainability Solutions (ESS) segment, the company expects to enhance its portfolio with promising high-growth opportunities and realize substantial additional cost efficiencies.
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The company said that Johnson Matthey’s Catalyst Technologies business aligns well with Honeywell’s existing UOP operations, which focus on catalysts and process technologies and will broaden Honeywell’s footprint in the refining and petrochemical catalyst markets.
This acquisition also enables Honeywell, for the first time, to deliver an end-to-end solution for producing lower-emission, essential fuels such as sustainable methanol, sustainable aviation fuel (SAF), blue hydrogen, and blue ammonia, contributing to both energy security and emissions reduction.
The expanded offerings will include licensed technologies, engineering expertise, support services, and catalysts for transforming hydrocarbon and renewable feedstocks into high-value products.
The transaction is expected to be completed by the first half of 2026, pending standard closing conditions and regulatory approvals.
The acquisition is anticipated to contribute positively to earnings within the first year and is expected to introduce high-growth opportunities to Honeywell’s Energy and Sustainability Solutions (ESS) division.
This move follows Honeywell’s recently announced plans to spin off its Aerospace Technologies and Advanced Materials businesses.
These separations will result in three independent, publicly traded companies with a focused strategy and distinct growth drivers.
Also, the company remains on track to surpass its goal of allocating at least $25 billion through 2025 across high-return investments, dividend payments, selective share repurchases, and strategic acquisitions.
In April, the company reported first-quarter revenue 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 cash and equivalents of about $9.66 billion as of March 31, 2025.
Investors can gain exposure to the stock via Themes Transatlantic Defense ETF (NASDAQ:NATO) and Gabelli Commercial Aerospace and Defense ETF (NYSE:GCAD).
Price Action: HON shares are trading higher by 0.13% to $222.17 at last check Thursday.
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