FLSmidth has reached an agreement to sell its bulk material handling business to Rainbow Heavy Machineries. The transaction has been structured as a sale of certain assets. As a result of the transaction, FLSmidth will exit the non-mining bulk material handling business.
The main part of FLSmidth's non-mining related bulk material handling business is delivered out of Wadgassen Gmbh in Germany. The non-mining bulk handling business has been for sale and reported as discontinued activities since 2015. Annual revenue for bulk material handling was DKK 880m in 2017.
FLSmidth's plan to exit bulk material handling includes:
- A transfer of employees, brand and IPR to Rainbow Heavy Machineries
- FLSmidth retains all ongoing projects, but to be delivered through an operational agreement with Rainbow Heavy Machineries. The projects are expected to be finalised during 2019-2020
The subsequent business related to bulk material handling will continue to be reported as discontinued activities. The transaction has no impact on the guidance for 2018. The sale transaction is subject to various conditions and is expected to be closed by the end of January 2019.
Contacts
Media Relations
Sofie Karen Lindberg, +45 30 93 18 77, skl@flsmidth.com
Investor Relations
Nicolai Mauritzen, +45 30 93 18 51, nicm@flsmidth.com
FLSmidth delivers sustainable productivity to the global mining and cement industries. As the market-leading supplier of engineering, equipment and service solutions, FLSmidth improves performance, drives down costs, and reduces the environmental impact of operations. Present in more than 50 countries and headquartered in Copenhagen, Denmark, the Group and its 11,700 employees generated revenue of DKK 18 billion in 2017. www.flsmidth.com (http://www.flsmidth.com)
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: FLSmidth via Globenewswire
