MDC creates and produces miniature parts for minimally invasive medical equipment and focuses on complex and high-precision components made from nitinol and platinum group metals
Montagu Private Equity to acquire Johnson Matthey’s MDC business. (Credit: Johnson Matthey)
Johnson Matthey (JM) has agreed to sell its medical device components (MDC) division to Montagu Private Equity for $700m in an all-cash deal.
MDC creates and produces miniature parts for minimally invasive medical equipment for rapidly expanding clinical specialisations.
It focuses on complex and high-precision components made from nitinol and platinum group metals. The business division has experience in the micro-machining, coating, and metallurgy of these speciality alloys.
MDC is now said to be one of the few suppliers in the world capable of designing and manufacturing these components at the necessary volume and quality.
The Johnson Matthey unit also supports its blue-chip clients to expedite innovation and enhance patient outcomes.
MDC provides global customer service through its production plants located in the US, Mexico, and Australia.
Upon completion of the transaction, the miniature parts maker will operate as a new standalone firm, led by its current management team.
Johnson Matthey chief executive Liam Condon said: “Today’s announcement represents a significant milestone in our disposals programme announced in May 2022.
“As a JM business, MDC has delivered technological differentiation and good growth to the critical health sector. We welcome Montagu’s plans to continue the investment and growth plans at MDC.”
Through the deal, Johnson Matthey would complete the divestment programme for its value businesses, which was first announced in May 2022. This includes the sale of the MDC, diagnostic services, and battery systems units.
Montagu Private Equity partner Adrien Sassi said: “The carve-out of MDC aligns strongly with Montagu’s approach. MDC has rare and hard to replicate capabilities that enable it to handle the most complex and demanding precision-engineered components at scale.
“With support from Johnson Matthey, Don and his team have positioned the business to capitalise on the fast growth of its underlying markets and blue-chip OEM customers. We look forward to supporting their ambitious expansion plans.”
The deal is subject to customary regulatory approval and closing conditions. It is anticipated to conclude around Q3 2024.