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 million in 2017.
FLSmidth's plan to exit bulk material handling includes:
- A transfer of employees, brand and IPR to Rainbow Heavy Machineries.
- FLSmidth retains all ongoing projects, but to be delivered through an operational agreement with Rainbow Heavy Machineries. The projects are expected to be finalised during 2019-2020.
The subsequent business related to bulk material handling will continue to be reported as discontinued activities. The transaction has no impact on the guidance for 2018. The sale transaction is subject to various conditions and is expected to be closed by the end of January 2019.
Read the article online at: https://www.worldfertilizer.com/special-reports/14012019/flsmidth-exits-bulk-material-handling-business/