COPENHAGEN, DENMARK: It was announced on 29 July 2021 that FLSmidth will acquire thyssenkrupp’s Mining business (TK Mining).
As stated in the announcement, it was still being negotiated if thyssenkrupp’s mining activities in India which are part of a larger integrated entity not fully owned by thyssenkrupp would be part of the transaction. Following discussions between the parties and with the minority shareholders, it has now been agreed to exclude the TK Mining activities in India from the final transaction.
Consequently the total consideration (enterprise value) for TK Mining will be reduced by EUR 45 million (approximately DKK 335 million) to EUR 280 million (approximately DKK 2.1 billion).
FLSmidth already has a strong presence in India and the TK Mining activities in India are not strategically important for the transaction. The exclusion of the TK Mining activities in India will not affect the transfer of TK Mining’s key IP and technologies to FLSmidth as part of the overall transaction.
In 20201, the TK Mining activities in India delivered revenue of ~EUR 100 million. TK Mining (excl. TK Mining activities in India) delivered revenue of ~EUR 680 million (~DKK 5.1 billion). The exclusion of the TK Mining activities in India has no impact on the expected synergies and integration costs for the transaction. TK Mining is still expected to be net profit and cash flow positive from 2024 on a stand-alone basis. The EV/EBITDA normalised incl. synergies is around 3.5x post integration.
FLSmidth delivers sustainable productivity to the global mining and cement industries. We deliver market-leading engineering, equipment and service solutions to our customers enabling them to improve performance, drive down costs and reduce environmental impact. Our operations span the globe and our ~10,100 employees are present in more than 60 countries. In 2020, FLSmidth generated a revenue of DKK 16.4 billion. www.flsmidth.com