Shares in Johnson Matthey (JMAT) soared more than 30% this week after the specialty chemicals group agreed to sell its Catalyst Technologies division to US industrial giant Honeywell (HON:NASDAQ) for an enterprise value of £1.8 billion.

The specialty chemicals group has come under increasing pressure from its largest shareholder Standard Investments to take ‘decisive action’ to unlock ‘unrealised promise,’ and this is a decisive move in that direction.

Over the past three years, Johnson Matthey has embarked on a transformation programme under chief executive Liam Condon to increase cash generation and create value for shareholders.

The sale of its catalyst unit follows the divestment of the battery materials business in 2022 and the sale of its medical device components unit last year.

The company has promised to return £1.4 billion of the sale proceeds to shareholders as well as committing itself to ‘enhanced returns’ to investors as part of its restructuring.

The latest set of results for the year to 31 March 2025 showed revenue down 2% excluding divestments and currency moves, and a 5% increase in operating profit on the same basis.

For the year to March 2026, which will include a contribution from the catalyst business, the firm expects operating profit to grow by mid-single-digits again. 

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