FLSmidth has reached an agreement to sell its bulk materials handling business to Rainbow Heavy Machineries. The transaction has been structured as a sale of certain assets. FLSmidth will exit the non-mining bulk material handling business as a result of the transaction.
The main part of the company’s non-mining related bulk material handling business was delivered out of Wadgassen GmbH in Germany. It has been for sale and reported as discontinued since 2015. In 2017, the company’s annual revenue for bulk materials handling was DKK880 m.
The company’s plan to exit bulk materials handling includes the following:
- A transfer of employees, brand, and intellectual property to Rainbow Heavy Machineries.
- FLSmidth will retain all ongoing projects, but these will be delivered through an operational agreement with Rainbow Heavy Machineries. The projects are expected to be finalised in 2019 – 2020.
Any subsequent business that is related to bulk material handling will continue to be reported as discontinued activities. The transaction will have no impact on the guidance for 2018. Subject to various conditions, the sale transaction is expected to be closed by the end of January 2019.
Read the article online at: https://www.drybulkmagazine.com/material-handling/11012019/flsmidth-exits-non-mining-bulk-material-handling-business/