German industrial group Thyssenkrupp has sold its TK Mining business unit to Danish mining and cement technology provider FLSmidth, Thyssenkrupp said July 29.
The closing of the deal, valued at Eur325 million ($386 million), is expected within the next 12 months and is now subject to competition authority approval.
The divestment is part of a larger restructuring of Thyssenkrupp into a group of companies with independent businesses.
Part of the restructuring is also the sale of the Italy-based stainless steel plant AS Terni and associated distribution where Thyssenkrupp is in discussions with “several potential buyers”. Italian re-roller Marcegaglia said in April it would be “firmly” interested in acquiring Terni.
“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.
In a separate statement, FLSmidth said revenue at TK Mining was at Eur780 million in 2020, with the company recording a negative EBIT margin, and is expected to return to profitability by 2024.
“The mining industry is characterised by sound fundamentals and a positive outlook, based on underinvestment over the past decade and increasing demand due to the clean energy transition,” said FLSmidth.
“TK Mining’s extensive active installed base, together with FLSmidth’s strong existing service setup, will provide additional aftermarket opportunities, while the joint R&D capabilities and combined portfolio will enable accelerated innovation in digitalisation and MissionZero solution,” said the Danish company.
— Laura Varriale
