24th November 2021
Johnson Matthey Plc
(the Company)
Johnson Matthey announces sale of Advanced Glass Technologies
Johnson Matthey plc
Johnson Matthey announces sale of Advanced Glass Technologies
Johnson Matthey (JM) today announces the sale of its Advanced Glass Technologies (AGT) business, a leading global provider of specialist glass enamels and precious metal pastes supplied mainly to the automotive sector. AGT is part of Value Businesses in JM's 'Other Markets' segment and was previously identified as non-core to JM's growth strategy.
AGT will be sold to Fenzi Holdings SPV S.p.A (“Fenzi Group”), a manufacturer and supplier of materials for flat glass processing, for £178 million payable in cash at completion on cash free, debt free basis and subject to customary completion accounts adjustments.
The transaction is subject to works council consultation in the Netherlands and the satisfaction of customary completion conditions with completion expected in spring 2022.
In the year ended 31st March 2021, AGT generated sales excluding precious metals of £66 million, operating profit of £17 million and gross asset of £49 million. A profit on sale in excess of £100 million is expected. In line with our capital allocation framework, we will return the sale proceeds to shareholders as part of the £200 million share buyback programme commencing in the New Year.
The divestment of AGT is consistent with our aim of creating a simpler, more focused portfolio. Aligned with JM's strategy, the company is focusing its resources towards growth areas targeted at climate change solutions as it delivers on its vision for a cleaner, healthier world.