Germany-based industrial group thyssenkrupp has announced the sale of its mining technologies business unit to the Danish company FLSmidth, thus reaching a further important milestone in the initiated realignment of the group.
The enterprise value is EUR325-million. The transaction is subject to competition authority approval. The closing of the transaction is expected within the next 12 months.
thyssenkrupp Industrials. Photo credit: thyssenkrupp
The Mining business was allocated to the Multi Tracks segment in October 2020 to find a new owner.
With the sale, thyssenkrupp is successfully divesting the first major portfolio company in this segment. The business unit currently employs some 3 400 people and generated sales of around EUR0.8- billion in fiscal year 2019/2020.
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.
“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,” said Martina Merz, CEO of thyssenkrupp AG. “At the same time, I am pleased that we have found a very good new owner in FLSmidth.