Danish engineering company FLSmidth has signed an agreement to acquire German-based engineering firm ThyssenKrupp’s mining business for €325m.
Employing nearly 3,400 people, ThyssenKrupp’s mining technologies business unit generated €800m in the fiscal year 2019-20. The business has presence in 24 countries.
In order to find a new owner, the German company moved its mining business to the multi tracks segment in October 2020.
The combination of FLSmidth and ThyssenKrupp’s mining unit is expected to create a business with a total proforma 2020 revenue of DKK22bn(€3bn).
Thyssenkrupp CEO Martina Merz said: “The successful sale of the Mining business shows that we are pressing ahead at full speed with the transformation of thyssenkrupp and achieving important results step by step. But we have not yet reached our goal.
“The principle ‘Performance first’ continues to apply. We need to return to positive cash flow as quickly as possible. The sale of Mining Technologies makes an important contribution to this.”
Subject to customary approvals from relevant authorities, the transaction is expected to be completed in the second half of 2022.
The acquisition of ThyssenKrupp’s mining business, which is complementary to FLSmidth’s offering, is a full-line supplier of solutions for mining systems, material handling, mineral processing and services.
It is expected to increase FLSmidth’s annual mining revenue by more than 50%.
In addition, the transaction is expected to strengthen the combined business’ ability to digitalise mines from pit to plant and to reduce their environmental footprint.
J.P. Morgan Securities served as sole financial advisor to FLSmidth on the transaction.
FLSmidth CEO Thomas Schulz said: “thyssenkrupp’s Mining business is an ideal addition for FLSmidth. We are particularly impressed by the capabilities, expertise and reputation of the thyssenkrupp employees, especially in projects and products.
“The large global installed base offers great potential for the service and aftermarket business. We have similar business models, share a strong focus on sustainability and digitalization and our corporate cultures are a good match.
“As a result, I am very much looking forward to combining our strengths; I am convinced that together we will play a leading role in shaping a zero emission future for the mining industry and in creating sustainable growth for our customers, employees and shareholders.”
