Honeywell to Acquire Johnson Matthey’s Catalyst Technologies Business for £1.8 Billion
On May 22, Honeywell announced it has agreed to acquire Johnson Matthey’s Catalyst Technologies division for £1.8 billion (approximately 17.4 billion RMB) in an all-cash transaction. The deal, which includes tax benefits and expected cost synergies, values the business at 11 times its projected 2025 EBITDA. The acquisition is expected to close in the first half of 2026.
This acquisition marks another strategic step in Honeywell’s ongoing portfolio transformation, reinforcing its commitment to clean energy, industrial innovation, and sustainable technology solutions.
A Strategic Fit with Honeywell’s UOP Business
Founded in 1817 and headquartered in London, Johnson Matthey is a leading global player in catalysts, precious metals, and specialty chemicals. Its Catalyst Technologies division accounted for 19% of Johnson Matthey’s total sales, with assets valued at £1.56 billion as of March 2025.
Honeywell stated that the acquisition perfectly complements its existing UOP (Universal Oil Products) business, which provides technologies and equipment for oil refining, natural gas processing, and petrochemical production. Together, the two portfolios will strengthen Honeywell’s position in the energy transition value chain.
Expanding Capabilities in Clean Fuels and Decarbonization
With this acquisition, Honeywell will be able to deliver end-to-end solutions for producing low-emission fuels — including sustainable methanol, sustainable aviation fuel (SAF), blue hydrogen, and blue ammonia.
“These technologies are critical for advancing energy security and reducing carbon emissions,” Honeywell said in its statement. The Catalyst Technologies business will become part of the Energy and Sustainable Technologies (ESS) segment after the deal’s completion.
Johnson Matthey’s Strategic Refocus
Following the divestiture, Johnson Matthey will reposition itself as a streamlined company focusing on clean air technologies and precious group metal catalysts (PGMs). The sale is expected to generate approximately £1.6 billion in net proceeds, enabling the company to sharpen its focus on its core expertise and improve shareholder value.
The market reacted strongly to the news — Johnson Matthey’s shares surged over 30% on the day of the announcement, reflecting investor confidence in the deal’s strategic value.
Honeywell’s Portfolio Transformation: A Pattern of Precision Acquisitions
This acquisition continues Honeywell’s active portfolio reshaping strategy that began in late 2023. It marks the sixth major acquisition disclosed since then, with a combined total value exceeding 96.6 billion RMB.
Previous key deals include:
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Carrier Global’s Security Business – $4.95 billion (Dec 2023)
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Civitanavi Systems – €200 million (Apr 2024)
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CAES Systems – $1.9 billion (Jun 2024)
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Air Products’ LNG Technology Business – $1.81 billion (Jul–Oct 2024)
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Sundyne – $2.16 billion (Mar 2025)
Each acquisition reflects Honeywell’s strategy of enhancing its automation, energy efficiency, and sustainability portfolios to prepare for its next phase of growth.
Strengthening Focus on Automation and Energy Technologies
In February 2025, Honeywell announced a plan to spin off its Aerospace division, creating three independent publicly listed companies:
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Honeywell Automation
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Honeywell Aerospace
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Honeywell Advanced Materials
This structural change aims to enhance operational focus, agility, and capital efficiency. CEO Vimal Kapur stated that Honeywell will continue to pursue strategic, synergistic acquisitions to reinforce each segment’s growth trajectory.
A Clear Commitment to Growth and Sustainability
Honeywell reiterated its commitment to deploy at least $25 billion by 2025 toward capital investments, dividends, share buybacks, and high-value acquisitions. The Johnson Matthey deal underscores this strategy — targeting high-return opportunities that align with global energy transition and industrial decarbonization trends.
As an industrial automation engineer, it’s clear that this move strengthens Honeywell’s ability to deliver integrated, low-carbon, and high-efficiency solutions — further establishing its leadership at the intersection of automation, energy, and sustainability.