ThyssenKrupp has announced the sale of its Mining Technologies business unit to Danish company FLSmidth.
The German firm said that the sale marked a further important milestone in its initiated realignment of the group.
The Mining business unit currently employs some 3,400 people and generated sales of around €800M in fiscal year 2019-20. The enterprise value is €325M. The transaction is subject to competition authority approval. The closing of the transaction is expected within the next 12 months.
“Thomas Schulz, CEO of FLSmidth, 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 digitalisation 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.”
The Mining business was allocated to ThyssenKrupp’s Multi Tracks segment in October 2020 in order to find a new owner. The sale is ThyssenKrupp’s first major portfolio company divestment in this segment.
ThyssenKrupp referred to the sale is “an important step in the initiated transformation of the group and the associated focusing of the portfolio”. The aim is to transform ThyssenKrupp into a high-performing “group of companies” with “independent businesses, a lean holding company and a focus on systematic performance improvement across all businesses”.
Martina Merz, CEO of ThyssenKrupp AG, 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.
“At the same time, I am pleased that we have found a very good new owner in FLSmidth. FLSmidth presented a convincing business strategy and a clear vision for the Mining business. It will give our employees attractive prospects. That was extremely important to us when negotiating the sale.”
The tie-up with FLSmidth, a listed company from Denmark and one of the world’s leading suppliers of technologies for the mining and cement industries, is expected to create a strong player with a global presence and leading solutions along the entire mining business value chain.
A particular focus is on green technologies that can significantly reduce resource consumption and emissions in the mining industry. FLSmidth also has expertise in taking over companies and has proven highly successful in integrating these companies.