Johnson Matthey PLC on Wednesday said it has agreed to sell its Medical Device Components business to Montagu Private Equity LLP, with the proceeds to fund a share buyback.

The London-based chemicals maker said the disposal for $700 million in cash is expected to complete around the third quarter of 2024.

Johnson Matthey said it will return £250 million of that sum to shareholders by means of a share buyback. The balance will be used to repay some existing debt and for other general corporate purposes.

Johnson Matthey Chief Executive Officer Liam Condon said: ‘We are pleased that this concludes our ’value businesses’ disposal programme which will deliver benefits to JM shareholders in terms of value realisation, simplification and increased focus on our growth businesses, where JM has a proven ability to win.’

Johnson Matthey shares rose 6.5% to 1,818.17 pence each on Wednesday morning in London.

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