FLSmidth has entered into a share purchase agreement to sell its Valley headquarters in Denmark. The collectively ‘the buying party’ Nrep and AG Gruppen will dispose all shares in FLSmidth’s subsidiary ‘Matr. No 2055 A/S’ owning land and buildings located on Vigerslev Allé 77 in Valby, Denmark.
This announcement marks a major milestone in FLSmidth’s long history in Copenhagen, where the company has been based since 1899. Its iconic red-brick buildings, designed by architect Palle Suenson, was inaugurated in 1956 and today serve as the corporate headquarters. In 2022, FLSmidth announced plans to relocate to a new corporate headquarter at Havneholmen in Copenhagen, with the move currently scheduled for late 2025.
The expected net cash proceeds from the sale amount to approximately DKK730m (US$112.6m) to be paid in full to FLSmidth upon closing of the transaction, expectedly at the end of the first quarter of 2026 following FLSmidth relocating to its new corporate headquarters. The expected accounting gain amounts to approximately DKK690m. Closing of the transaction is subject to approval by the Danish Consumer and Competition Authority.
The expected net cash proceeds from the sale will be allocated in line with the company’s general capital allocation priorities as well as to general corporate purposes. The transaction does not change FLSmidth’s previously communicated financial guidance for the full year 2025.
