Thyssenkrupp Industrial Solutions, fully owned by thyssenkrupp AG, has reached a deal with FLSmidth for the acquisition of thyssenkrupp’s mining business, TK Mining.
FLSmidth, a global supplier based in Denmark said in a company announcement Thursday, it has agreed to purchase the German engineering company’s mining equipment for €325mn ($386mn).
The transaction, first announced in January is expected to close during H2 2022 and is subject to routine approval from applicable groups.
Competitors of Thyssenkrupp’s mining business include Sweden’s Sandvik and Atlas Copco and Finland’s Metso Outotec. The mining unit produced high, negative operating margins in 2020 and is anticipated to return to profitability by 2024, FLSmidth indicated.
FLSmidth also noted yearly combined run rates of €50mn are estimated by the end of 2024, while integration costs are projected to be €75mn and will be phased over three years starting in 2022.
($1 = €0.84)