Business for sale

British science and chemicals company Johnson Matthey Plc. (JMAT.L) said it had agreed to sell its healthcare business to Altaris Capital Partners, an investment firm focused exclusively on the healthcare industry, for an enterprise value of £325 million.

JM's Health is a global developer and manufacturer of specialty and complex active pharmaceutical ingredients for pharmaceutical and biotechnology clients. Johnson Matthey Plc. announced a strategic review of its healthcare business in April 2021.

It is worth noting that Johnson Matthey said on Friday that it would receive £150m on completion and retain about a 30% stake in the business, from which it expects to gain significant additional value in the future under Altaris.

The company said an additional £50m payment will be contingent on achieving certain performance targets in financial years 2023 and 2024, with a further £50m structured as a supplier credit note to be deferred until a future exit. and until then will accrue interest at 8% per annum, quarterly.

However, the sale is expected to result in an accounting loss on disposal impairment of approximately £200 million. The transaction is expected to close in mid-2022.