Honeywell Takes $640 Million Axe To Johnson Matthey Deal

On Monday, Honeywell International Inc. (NASDAQ:HON) announced that the company has entered into an amended agreement to acquire Johnson Matthey Plc’s (OTC:JMPLY) Catalyst Technologies business.

The company first announced the acquisition in May 2025 for 1.8 billion pounds (about $2.4 billion), valuing the deal at roughly 11 times projected 2025 EBITDA at the time of the announcement.

By integrating Catalyst Technologies with Honeywell’s Energy and Sustainability Solutions (ESS) segment, the company expects to enhance its portfolio with promising high-growth opportunities and realize substantial additional cost efficiencies.

Details

Honeywell has adjusted the total consideration for the acquisition to 1.325 billion pounds (~$1.79 billion) from 1.8 billion pounds (~$2.43 billion), with the long stop date extended to accommodate outstanding transaction requirements.

According to a Bloomberg report, Johnson Matthey shares fell as much as 17%, the most since 2021, following the announcement. The stock was trading around 14% lower at 8:51 a.m. in London, giving the company a market value of 3.3 billion pounds.

Notably, the company has extended the long stop date to July 21, 2026, with the possibility of further extension to August 21, 2026, should certain conditions be met.

The company expects the deal to close by the end of August 2026, subject to customary closing conditions, including regulatory approvals.

In the meantime, Honeywell will continue its pre-existing commercial collaborations with Johnson Matthey to drive value for customers globally.

The acquisition is expected to be accretive to Honeywell’s adjusted earnings per share in the first full year of ownership.

Technical Analysis

Currently, Honeywell is trading 1.5% below its 20-day simple moving average (SMA) and 2.3% below its 100-day SMA, suggesting some short-term weakness. Over the past 12 months, shares have increased by 14.92% and are currently positioned closer to their 52-week highs than lows.

The RSI is at 44.45, which is considered neutral territory, while MACD is at 0.15, below its signal line at 0.22, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum.

• Key Resistance: $245.00
• Key Support: $240.00

Earnings & Analyst Outlook

Honeywell is slated to provide its next financial update on April 28, 2026.

• EPS Estimate: $2.33 (Down from $2.51)
• Revenue Estimate: $9.26 Billion (Down from $9.82 Billion)
• Valuation: P/E of 32.2x (Indicates premium valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $244.00. Recent analyst moves include:

• JP Morgan: Overweight (Raises Target to $260.00) (Jan. 30)
• Citigroup: Buy (Raises Target to $265.00) (Jan. 30)
• RBC Capital: Outperform (Raises Target to $268.00) (Jan. 30)

HON Price Action: Honeywell Intl shares were up 0.01% at $244.00 during premarket trading on Monday, according to Benzinga Pro data.

Photo by josefkubes via Shutterstock