FLSmidth to acquire thyssenkrupp’s TK Mining business for €325mn

FLSmidth, the Danish cement and mining solutions specialist, is to acquire thyssenkrupp’s mining business, TK Mining, for €325 million (DKK 2.4bn). The “transformational” deal is set to be finalised in H2 2022, subject to customary approvals from relevant authorities.
Quarry Products / July 29, 2021
By Guy Woodford
FLSmidth is to acquire thyssenkrupp's TK Mining business for €325mn

TK Mining is a leading full-line supplier of solutions for mining systems, material handling, mineral processing and services, which is highly complementary to FLSmidth’s offering. Offering an asset-light business model, TK Mining is present in 24 countries with engineering and global service centres. The business has close to 3,400 employees. In 2020, TK Mining revenue was €780 million (DKK 5.8bn), with around one-third deriving from services.

Thomas Schulz, Group CEO of FLSmidth, said: “TK Mining and FLSmidth are a perfect match, and I am proud to announce this agreement to join forces. This is a truly transformational deal allowing us to accelerate our growth ambitions in mining by creating a stronger talent pool and one of the world’s largest and strongest suppliers to the mining industry. Our complementary customer base and improved geographic coverage will offer a strong value proposition to our customers.

“There is a significant opportunity in transforming TK Mining towards FLSmidth’s business mix and model in which higher-margin service business makes up about 60% of revenue. I look forward to welcoming TK Mining’s management team and talented staff to our organisation.”

Martina Merz, Group CEO of thyssenkrupp, said: “FLSmidth is an excellent owner and a very good new home for our mining activities. The companies have a strong cultural fit and are a good match: the business models are comparable, the technologies complement each other well. The result is a world-leading technology provider from pit to plant. This is also a great opportunity for our employees. The merged new company will be able to drive innovation and digitalisation even faster and will increasingly focus on sustainability and ways to reduce environmental footprint.”

FLSmidth Group CEO Thomas Schulz
FLSmidth Group CEO Thomas Schulz

The mining industry is characterised by sound fundamentals and a positive outlook, based on underinvestment over the past decade and increasing demand due to the clean energy transition. The timing of this acquisition positions FLSmidth to capture enhanced value from the mining growth cycle underway.

The combination of FLSmidth and TK Mining creates a business with a total proforma 2020 revenue of €3 billion (DKK 22bn), increasing FLSmidth’s annual Mining revenue by more than 50% and positioning FLSmidth in the top-tier of suppliers to the mining industry. The acquisition will accelerate FLSmidth’s growth ambitions with a strategic focus on mining, which is expected to constitute approximately 75% of Group revenue after closing the transaction.

For more information on companies in this article