FLSmidth has come to an agreement with thyssenkrupp to acquire the latter’s mining technologies business in a EUR325 million deal.
For thyssenkrupp, a supplier of mining systems, mineral processing, material handling and services solutions that are complementary to FLSmidth’s mining offerings, is the culmination of a realignment plan it first announced last October. At that point, it allocated the mining arm to the Multi Tracks segment so it could locate a new owner.
FLSmidth said, to its benefit, the purchase will give it a combined complete, full-line coverage of pit-to-plant range of technology, equipment and service expertise, as well as best-in-class digital solutions, covering continuous mining, mineral processing, mining systems and material handling.
The sale is an important step, thyssenkrupp stressed, in its “initiated transformation of the group and the associated focusing of the portfolio,” under which its goal is to “transform thyssenkrupp into a high-performing ‘group of companies’ with independent businesses” and be a lean holding company with a focus on systematic performance improvement.
“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, said Martina Merz, CEO of thyssenkrupp. “The principle ‘Performance first’ continues to apply.”
Thomas Schulz, Group CEO of FLSmidth, noted that the acquisition will allow for a more robust approach to customers for both service and aftermarket, create strategic opportunities and boost its resources and investment in research and development, digital and innovation – which will, in turn, allow for shorter times to market for its products.
“Both companies also share a common belief in bringing sustainable technology to the market in order to increase customer productivity and profitability. thyssenkrupp’s mining offering is an ideal fit with FLSmidth’s MissionZero sustainability ambition and with our digitalisation agenda. This acquisition will place FLSmidth in an even better position to meet customer needs in these key areas,” he said.
“This is a truly transformational deal allowing us to accelerate our growth ambitions by creating one of the world’s largest and strongest suppliers to the mining industry. There is a significant opportunity in transforming thyssenkrupp’s Mining business towards FLSmidth’s business mix and model with more than 50% service business.”
The transaction’s closing is subject to regulatory conditions, but is expected to occur in the second half of 2022.