FFE Minerals, the minerals processing arm of FLSmidth, has acquired the materials handling business of US based RAHCO International, Inc., a world leader in the supply of mobile conveying solutions.
The transaction, valued at approximately US$19.5 million, also includes RAHCO’s sales, design and service operation in Chile. The company will, from the effective date of 1 April 2007, trade under the name of FLSmidth RAHCO Inc.
RAHCO designs, manufactures and services bulk handling systems for the mining, aggregate and bulk solids industries, including mobile conveyors, radial stackers, portable conveyors, fixed/overland conveyors and at-the-face mining conveyors. The at-the-face mining solutions supplied by RAHCO, ranging in capacity from 200 - 10,000 tph and in lengths from 25 - 700 meters, represent viable and economic alternatives to traditional mining methods.
The acquisition of RAHCO combined with the recent acquisition of KOCH Transporttechnik positions FFE Minerals as a global leader in material handling solutions for the minerals industries, with the ability to offer large scale energy efficient mobile crushing and conveying equipment used in mining operations.
The sales of RAHCO are expected to surpass US$20 million in 2007 and will have a minimal effect on the FLSmidth Group’s earnings in 2007, after consideration of IAS purchase accounting impacts.
"The expansion of the Minerals operation of FLSmidth has been identified as a strategic objective for our company. The acquisition of the materials handling business of RAHCO is one more step along the way. The combination of RAHCO, a respected mobile conveying technology provider, with the FFE Minerals group, presents opportunities to leverage the RAHCO technology through the worldwide footprint of FFE Minerals including penetration into the growing oil sands markets." says, Group CEO Jørgen Huno Rasmussen, FLSmidth.