UK's Johnson Matthey sells unit to Honeywell for $2.4 billion

May 22 (Reuters) - British chemicals firm Johnson Matthey JMAT.L has agreed to sell its division that houses technologies to make sustainable fuels to Honeywell International HON.O for 1.8 billion pounds ($2.4 billion), including debt.

The unit, known as Catalyst Technologies, designs and manufactures catalysts for the energy and chemicals industries, used in the production of sustainable aviation fuel, fertilizers, paints, and other products.

Once the sale is completed, Johnson Matthey expects to be streamlined and focussed on its businesses that make pollution filters for cars and processes platinum group metals.

Standard Investments, one of its largest shareholders, urged the group last December to initiate a strategic review and overhaul its board.

Johnson Matthey recently changed its finance head and launched a review of its executive pay.

The deal is expected to generate net proceeds of approximately 1.6 billion pounds, the British company said, adding that around 88% of the amount will be returned to shareholders.

($1 = 0.7447 pounds)