FLSmidth sells cement unit, bets future on mining

Danish engineering group FLSmidth & Co. has agreed to sell its Cement business to an affiliate of private equity firm Pacific Avenue Capital Partners, completing its transformation into a company focused solely on the mining industry.

The company said the deal has an initial value of 75 million euros, with a potential additional payment of up to 75 million euros.

"The divestment allows us to sharpen our focus on our core Mining business, positioning FLSmidth as a pure-play leader in the mining industry," Chief Executive Mikko Keto said in a statement.

The move follows the company's agreement to sell its historic corporate headquarters in Copenhagen to Nrep and AG Gruppen for net cash proceeds of 730 million Danish kroner.

FLSmidth, which has been based at the site since 1899, plans to relocate to a new headquarters in late 2025, with the property sale expected to close in the first quarter of 2026, according to the company.

Supported by the divestments, FLSmidth also announced its first share buyback program since 2012, valued at up to 1.4 billion Danish kroner.

The company said the proceeds from the headquarters sale will be allocated in line with its general capital priorities.

The sale of the cement unit is expected to close in the second half of 2025, subject to regulatory approvals.