FLSmidth signs agreement to divest its cement business to become a pure-play supplier of technology and services to the mining industry. FLSmidth has announced that it has entered into an agreement to divest its Cement business to Pacific Avenue Capital Partners. This strategic move marks the company’s transformation into a dedicated technology and service provider for the mining industry. The deal includes an initial consideration of EUR 75 million, with conditional deferred cash consideration of up to EUR 75 million.
In line with its “pure-play” strategy, announced in early 2023, FLSmidth has restructured and streamlined its Mining and Cement divisions to concentrate on core technologies and services. The decision to divest the Cement business was publicly communicated in early 2024 as part of this focused strategy.
Chair of the Board of Directors of FLSmidth, Mads Nipper, comments: “I am incredibly proud of what our Cement business has achieved in its more than 140-year long history with FLSmidth. We firmly believe that this divestment represents a pivotal step in unlocking the full potential for both our Mining and Cement businesses. Our Cement business is now well positioned for future success, with the flexibility to pursue its strategic ambitions and create exciting new opportunities for its employees to innovate and grow.”
CEO of FLSmidth, Mikko Keto, added: “The divestment allows us to sharpen our focus on our core Mining business, positioning FLSmidth as a pure-play leader in the mining industry. With a clear and focused Mining strategy, we are confident that we are well positioned to drive long-term value for our customers, shareholders and other stakeholders and enhance our competitive position.”
Jason Leach, Partner and Investment Committee Member at Pacific Avenue Capital Partners, said: “We are excited to acquire FLSmidth Cement, a global leader providing mission critical equipment and aftermarket solutions in the cement sector. The business has a rich history and strong brands including Fuller, Pfister, and Ventomatic. We believe that cement will continue to play a crucial role in global economic development, and that FLSmidth Cement’s product innovation will play an important role in the decarbonisation of the industry”.
Chris Sznewajs, Founder and Managing Partner, at Pacific Avenue Capital Partners, comments: “We are honoured to be the trusted partner for FLSmidth on this highly complex transaction. We strive to be the buyer of choice for corporate sellers, with the ability to seamlessly complete cross-border transactions. The Cement division is an excellent fit within our portfolio given our focus on acquiring market leading companies. We are impressed with the Company’s ability to deliver innovative, mission-critical solutions to its longstanding customers, and look forward to providing the necessary resources to support continued growth and value creation in partnership with management.”
The transaction, expected to close in the second half of 2025 pending regulatory approvals, includes all related employees, assets, and technologies. Until closing of the transactions, FLSmidth Cement will continue to execute on its GREEN’26 strategy. Further, during the period to closing of the transactions and for a limited time thereafter, FLSmidth will continue to provide support and services to FLSmidth Cement.
