FLSmidth has announced its agreement to divest its cement business to an affiliate of Pacific Avenue Capital Partners, a global private equity firm focused on carve-outs and other complex transactions.
The divestment is the result of a process initiated in 2023 when FLSmidth embarked on a strategic journey with the announcement of new pure-play strategies for its mining and cement businesses.
Since then, FLSmidth has simplified and rightsized both businesses to further strengthen their respective market positions, with a strategic focus on the core technologies and services required in the mining and cement industries.
The cement business has a 140-year long history with FLSmidth and the divestment allows the business to pursue its strategic ambitions and create new opportunities for its employees to innovate and grow.
The purchase price is EUR 150 million split between upfront consideration of EUR 75 (enterprise value) plus a conditional deferred cash consideration of up to EUR 75 million.
The transaction is expected to close during the second half 2025, subject to customary closing conditions, including regulatory approval from the relevant authorities.
Gorrissen Federspiel advises FLSmidth on the transaction with a core team comprising Kristina Klem, Martin Skytte, Oliver Nørgård Jensen, Niklas Guldberg, Christoffer Stensdal, Søren Høgh Thomsen, Niclas Holst Sonne and lead by partners Mikael Philip Schmidt and Anders Ørjan Jensen.
UBS Corporate Finance acted as financial advisor to FLSmidth.