FLSmidth completes mining pivot, launches DKK 1.4B share buyback

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 enterprise value of 75 million euros, with a potential additional payment of up to 75 million euros conditional upon achieving certain objectives.

The sale is the culmination of a strategy announced in early 2023 to separate its mining and cement businesses, with the company first signaling it would explore divestment options for the cement unit in January 2024.

"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.

FLSmidth said it expects to book a non-cash impairment charge of approximately 700 million Danish kroner from the transaction, which is expected to close in the second half of 2025.

Supported by the divestment and the recent sale of its corporate headquarters, FLSmidth also announced its first share buyback program since 2012, valued at up to 1.4 billion Danish kroner.

The company said the buyback program will run until March 2026.

The proceeds from the sale of its Copenhagen headquarters, announced June 17, are expected to be approximately 730 million Danish kroner in cash, according to the company.