Johnson Matthey sells medical parts unit for $700m

Johnson Matthey is selling its medical device components business to Montagu Private Equity for $700m (£550m), the company said on Wednesday.

The business makes parts for medical device manufacturers globally with a focus on precious metal alloys and nitinol. It operates manufacturing sites in the US, Mexico, and Australia.

Johnson Matthey said it had now finished the divestment programme announced in May 2022, bringing aggregate net proceeds from sales to "significantly more" than our target of £300m.

"In line with our stated capital allocation policy, it is the board's current intention to return to shareholders £250m of the net proceeds of the sale of MDC by way of an on-market share buyback programme. The balance of the net proceeds will be used to repay some of JM's existing debt and for other general corporate purposes," it added.

Reporting by Frank Prenesti for Sharecast.com