FLSmidth has agreed to sell Densit A/S to Illinois Tool Works Inc. (ITW). The sale will take place in an all-share deal. The parties have agreed not to disclose the selling price.
The sale marks the final stages of the Group’s ongoing focusing on Cement and Minerals, which has taken place since 2002 - Densit being one of the Group’s final remaining non-core activities.
The FLSmidth Group formed Densit A/S as an independent company in 1983. Densit employs 68 people, and its turnover in 2006 amounted to DKK 144m (EUR 19m) with earnings before interest and tax (EBIT) being DKK 9m.
Densit produces cement-based special-purpose materials used in the security industry, for wear protection, for industrial flooring and for reinforcement of offshore drilling rigs and offshore wind turbine foundations. The company also produces wear-resistant components, notably for the cement and power generating industries.
ITW, the buyer, designs and produces engineered fasteners and components, equipment and consumables as well as specialty products for customers worldwide. ITW’s history goes back more than a hundred years, and today it has more than 750 business units in 49 countries - including a number of companies in Denmark. In 2006, ITW posted a turnover of USD 14bn and employed some 55,000 people worldwide.
Densit’s day-to-day management is pleased with the choice of buyer and looks forward to benefiting from the new owner’s strong network in Densit’s markets.
The sale of Densit will be positively reflected in FLSmidth’s projected earnings (EBIT) for 2007 at an amount of DKK 80m. Densit’s earnings from 1 January to 31 October 2007 will be included in the FLSmidth & Co. A/S consolidated accounts for 2007. As a consequence of the sale, the Group upgrades its expectations for the year’s EBIT and EBT results from formerly DKK 1.45-1.6bn to now DKK 1.55-1.7bn.