M&As: Honeywell to acquire Johnson Matthey's catalyst biz for £1.8 bn; DKSH acquires specialty polymers distributor APN Plastics in Australia and Malaysia

Integrated firm Honeywell has announced that it has agreed to acquire UK-based Johnson Matthey's Catalyst Technologies business segment for £1.8 billion in an all-cash transaction, representing approximately 11x estimated 2025 EBITDA, inclusive of tax benefits and run-rate cost synergies. The acquisition is expected to close by 1H 2026, subject to customary closing conditions.

The combination of Johnson Matthey's Catalyst Technologies business with Honeywell's Energy and Sustainability Solutions (ESS) business segment is expected to add attractive high growth vectors to the portfolio and drive significant additional benefits through cost synergies.

Johnson Matthey's Catalyst Technologies' business model complements Honeywell's existing UOP business of selling catalyst and process technologies and expands its installed base across refining and petrochemical catalysts. In addition, with an expanded portfolio, Honeywell will for the first time be able to offer customers a comprehensive solution for the production of lower emission, critical fuels including sustainable methanol, sustainable aviation fuel (SAF), blue hydrogen and blue ammonia, which enhance energy security and reduce emissions. The resulting offerings will provide licensed technology, engineering, services and catalysts to convert hydrocarbon and renewable feedstocks to high-value end products.

Johnson Matthey's Catalyst Technologies business segment is a leading provider of catalyst manufacturing and process technology licensing. It has approximately 1,900 employees and is headquartered in London, UK, with sites in the US, Europe and India.

"As we continue to expand and evolve our ESS portfolio, acquiring Johnson Matthey's Catalyst Technologies business will provide our customers a comprehensive and cost-effective approach to transition their businesses to high-value products with lower emissions," said Ken West, President/CEO of Honeywell's ESS segment. "Together, we will be able to create an integrated solution while also diversifying our UOP projects and service offerings to help our customers around the world continue innovating and driving energy security for the future."

The acquisition is expected to be accretive to earnings in the first year and will add attractive high growth vectors to Honeywell's ESS business.

The acquisition follows Honeywell's announcement of the planned spin off of its Aerospace Technologies business along with the planned spin off of its Advanced Materials business, which will result in three publicly listed industry leaders with distinct strategies and growth drivers.

Since December 2023, Honeywell has announced a number of strategic actions to drive organic growth and simplify its portfolio, including approximately US$11 billion of accretive acquisitions recently closed or announced: the Access Solutions business from Carrier Global, Civitanavi Systems, CAES Systems, the LNG business from Air Products, and Sundyne. In addition, Honeywell entered into an agreement to divest its Personal Protective Equipment business, which is expected to close in Q2 2025. Honeywell remains on pace to exceed its commitment to deploy at least US$25 billion toward high-return capital expenditures, dividends, opportunistic share purchases and accretive acquisitions through 2025.

In other news, DKSH Performance Materials has acquired APN Plastics, a specialty polymers distributor, operating in Australia and Malaysia. The acquisition enables DKSH Performance Materials to further scale the presence in both markets based on a diversified client and customer base. Terms were not disclosed.

APN Plastics, founded in Melbourne in 2005 and expanded to Malaysia in 2015, serves around 270 customers across Australia, China, Malaysia, Singapore, and Taiwan. The company has a highly diversified customer base across various markets, such as medical, infrastructure, transportation, consumer appliances, specialty packaging, and irrigation, and is known for its extensive technical knowledge in the biomedical and engineering plastics sector.

APN Plastics generates annual net sales of more than CHF25 million. DKSH will acquire the entire business and fully integrate the company into its existing operations.

Ian Hoult, Founder/Managing Director of APN Plastics, commented: “APN Plastics has spent two decades building strong, strategic relationships across the specialty polymer distribution industry. Joining DKSH marks a significant step forward in accelerating our growth and global presence.”

Thomas Sul and Natale Capri, Co-Heads Business Unit Performance Materials at DKSH, jointly commented: “We are pleased to have APN Plastics on board, to add new capabilities, and to further scale our presence in Australia and Malaysia. We warmly welcome the team and look forward to growing the business together in Asia Pacific and beyond.”

The closing of the transaction is expected during the second quarter of 2025 and is subject to customary closing conditions.

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