Johnson Matthey, a British multinational chemicals company, has announced plans to sell its medical device components business. The business, which is headquartered in the United States, makes components for a range of medical devices, including pacemakers, insulin pumps, and surgical instruments.
Johnson Matthey said that the sale is part of its strategy to focus on its core businesses. The company said that it expects to complete the sale by the end of 2023.
The sale of the medical device components business is expected to generate proceeds of $500 million to $700 million for Johnson Matthey. The company said that it will use the proceeds to invest in its core businesses and to return capital to shareholders.
The sale of the medical device components business is the latest in a series of asset sales by Johnson Matthey. In 2022, the company sold its catalysts business to Albemarle Corporation for $1.2 billion.
Johnson Matthey is a global leader in the development and production of catalysts, precious metals, and specialty chemicals. The company employs approximately 23,000 people and has operations in over 30 countries.
Analysis
The sale of Johnson Matthey's medical device components business is a significant move for the company. The business is a relatively small part of Johnson Matthey's overall business, but it is a profitable business. The sale of the business will allow Johnson Matthey to focus on its core businesses and to return capital to shareholders.
The sale of the business is also a sign of the changing landscape in the medical device industry. The industry is consolidating, and larger companies are buying smaller companies. Johnson Matthey's medical device components business is a small player in the industry, and it is likely that it would have been difficult for the company to compete against larger rivals.
The sale of the business is a positive development for Johnson Matthey shareholders. The proceeds from the sale will be used to invest in the company's core businesses and to return capital to shareholders. This will help to boost the company's growth and profitability in the years to come.
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