Honeywell Cuts Catalyst Purchase Price by £475 Million, Extends Deadline to August 2026
Honeywell agreed to reduce its acquisition price for Johnson Matthey’s Catalyst Technologies business from £1.8 billion to £1.325 billion, trimming £475 million off the initial valuation. The amended deal extends the long-stop date to July 21, 2026 with a possible further extension to August 21 and expects closing by end-August 2026.
1. Acquisition Price Reduction
Honeywell amended its agreement to acquire Johnson Matthey’s Catalyst Technologies business, cutting the purchase price from £1.8 billion to £1.325 billion, a £475 million reduction. This adjustment lowers the multiple on projected 2025 EBITDA and reflects renegotiation under changing market conditions.
2. Extended Closing Deadline
The long-stop date has been extended to July 21, 2026, with the option to further extend to August 21, 2026. Honeywell now expects the transaction to close by the end of August 2026, pending customary regulatory and closing conditions.
3. Earnings and Synergies
The acquisition is expected to be accretive to Honeywell’s adjusted earnings per share in the first full year of ownership as the Catalyst Technologies unit integrates into its Energy and Sustainability Solutions segment. Management forecasts that combining operations will yield substantial cost efficiencies and bolster high-growth opportunities in sustainable technologies.