Johnson Matthey PLC

JMAT: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBP 9,661.87	Jmyglg	Zkyt

Johnson Matthey Announces Sale of Health Business; Shares Fairly Valued

Rob Hales

Dec 20, 2021

Narrow-moat Johnson Matthey announced the sale of its health business to Altaris Capital Partners after a period of strategic review. Enterprise value of the transaction is GBP 325 million, which represents 9.8 times underlying EBITDA. This is below the low end of our expected range, and, therefore, we lower our fair value estimate to GBX 2,200 from GBX 2,400. At current levels, shares look fairly valued.

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