#United States #Charlotte #Honeywell #Johnson Matthey #Catalyst Technologies

Honeywell's Strategic Move to Acquire Catalyst Technologies

In a significant development for the energy and process technologies sector, Honeywell (NASDAQ: HON) has announced an updated agreement to acquire Johnson Matthey's Catalyst Technologies business. Originally valued at £1.8 billion, the deal has now been recalibrated to £1.325 billion, reflecting a strategic pivot in response to existing market conditions and operational requirements.

Details of the Amended Agreement

The adjustment in the acquisition agreement includes not only the reduction in total consideration but also an extension of the long stop date to July 21, 2026. This is intended to provide ample time to secure the necessary regulatory approvals. Should any approvals remain pending by the long stop date, Honeywell has the option to extend it further to August 21, 2026, given specific conditions are satisfied.

The integration of Johnson Matthey's Catalyst Technologies with Honeywell's robust capabilities in Process Technologies is anticipated to create immense value. Key objectives of the acquisition include:

• - Strategic Growth: The merger aims to expand Honeywell's installed base and provide a cohesive integration of energy and process technologies.
• - Enhanced Offerings: This acquisition will bolster Honeywell UOP's offerings by adding a significant installed base in refining, petrochemicals, and renewable fuels, thereby addressing the increasing demand in these sectors.
• - Synergistic Benefits: The blend of Johnson Matthey's business with Honeywell's existing catalyst portfolio will not only amplify current capabilities but also enhance growth in renewable fuels.
• - Improved Aftermarket Capabilities: By merging with Johnson Matthey, Honeywell is set to foster strong synergies, particularly in its Process Technologies and Process Automation businesses.

Maintaining Strong Collaborations

As the two companies advance towards closing the acquisition, Honeywell plans to uphold existing commercial collaborations with Johnson Matthey. This approach is crucial as it allows them to continue delivering value to customers globally, leveraging their longstanding partnership for successful outcomes.

Anticipated Closing Timeline

The completion of this acquisition is forecasted for late August 2026, subject to standard closing conditions, including the requisite regulatory approvals. Honeywell expects that integrating Johnson Matthey's Catalyst Technologies will contribute positively to its adjusted earnings per share in the initial year following acquisition.

About Honeywell

Honeywell is a well-established integrated technology and manufacturing company that serves a diverse range of industries globally. With a focus on innovation and performance, Honeywell utilizes its Honeywell Accelerator operating system and Honeywell Forge platform to tackle some of the world’s most intricate challenges. Its extensive portfolio includes solutions for aerospace, building automation, industrial automation, and process technology, aimed at creating a safer and more sustainable world.

For further information about Honeywell and its latest news, visit their official newsroom.

Forward-Looking Statements

This announcement includes forward-looking statements that are subject to various risks and uncertainties. These include potential changes to the global economic landscape, regulatory changes, and operational challenges that may affect the anticipated benefits of the acquisition. Investors and stakeholders are encouraged to keep abreast of updates via Honeywell's Investor Relations website, which is a critical source for disclosures related to company developments and performance forecasts.