Johnson Matthey (JM) has agreed to sell the majority of its Health business to Altaris Capital Partners, an investment firm focused exclusively on the healthcare industry, for £325 million enterprise value, or 9.8 x EBITDA in the 12 months to 30 September 2021. Completion is anticipated in mid-2022, subject to regulatory approvals.

Following a detailed review, Johnson Matthey has concluded that the potential returns from its Battery Materials business “will not be adequate to justify further investment”. It will therefore seek to sell all or parts of the business.

Although demand has been growing strongly, the company said, “so is competition from alternative technologies and other manufacturers” and the market is becoming commoditised. JM had explored partnerships in the field but found that “our capital intensity is too high compared with other more established large-scale, low-cost producers”.