FLSmidth sells bulk material handling business

FLSmidth sells bulk material handling business
10 January 2019

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 DKK880 (US$135.8m) in 2017.
FLSmidth's plan to exit bulk material handling will include the transfer of employees, brand and IPR to Rainbow Heavy Machineries. FLSmidth will retain all ongoing projects, but they are to be delivered through an operational agreement with Rainbow Heavy Machineries. The projects are expected to be finalised during 2019-20.

The sale transaction is subject to various conditions and is expected to be closed by the end of January 2019.

Published under Cement News