Johnson Matthey PLC on Wednesday said it has completed the sale of Veranova, formerly Johnson Matthey Health, but it will retain a 30% stake in the health business.

In December, London-based chemical and technology firm Johnson Matthey announced the sale of Veranova to healthcare investment firm Altaris Capital Partners LLC in a deal that put a £325 million enterprise value, including debt, on the business.

Johnson Matthey said it will receive £150 million cash on completion of the sale, whilst retaining around a 30% equity stake in Veranova. An additional £50 million will be paid on the achievement of certain performance targets in financial year 2023 and a further £50 million will be structured as a vendor loan note, which will be deferred until a future exit and would accrue interest at a rate of 8% per annum.

Shares in Johnson Matthey were up 0.8% to 2,126.00 pence each in London on Wednesday morning. The company is expected to return to the FTSE 100 index at the quarterly review that will be announced at the London market close on Wednesday.

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