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03.08.2021 (704 Clicks)

Fugro wins multi-year Contract to build new Pavement Management System for Manitoba

The Province of Manitoba in Canada has awarded Fugro a 4-year contract to develop a new pavement management system that will guide strategic selection of road maintenance projects for optimised use of transportation budgets.

 

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03.08.2021 (426 Clicks)

QRC: Resources Sector backs strict Covid-19 Protocols to fight new Outbreak

The resources sector will continue to follow strict Covid-19 protocols in the wake of the lockdown of 11 LGA’s in Queensland to protect employees and regional communities from the virus.

 

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29.07.2021 (322 Clicks)

FLSmidth to acquire Thyssenkrupp’s Mining Business – creating a global Industry Leader in Mining Technology


FLSmidth and Thyssenkrupp Industrial Solutions AG (a fully owned subsidiary of Thyssenkrupp AG) have reached an agreement that FLSmidth will acquire Thyssenkrupp’s Mining business1 (TK Mining) for a total consideration (enterprise value) of EUR 325 million, corresponding to approximately DKK 2.4 billion. Closing of the transaction is expected in H2 2022 and is subject to customary approvals from relevant authorities.

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. TK Mining has an asset light business model and is present in 24 countries with engineering and global service centres, and has close to 3,400 employees. In 20202, revenue was EUR 780 million (approximately DKK 5.8 billion) with around one-third deriving from services. The business delivered a high single-digit negative EBIT margin and is expected to return to profitability by year 2024 based on the ongoing restructuring undertaken by TK Mining. In addition, the combination with FLSmidth offers large cost synergies, creating significant shareholder value.

A combination of the two companies will create a leading global mining technology provider with operations from pit to plant, extending the strategic customer relationships with a complementary product offering and customer base as well as improved geographic coverage. Furthermore, TK Mining’s extensive active installed base, together with FLSmidth’s strong existing service setup, will provide additional aftermarket opportunities, while the joint R&D capabilities and combined portfolio will enable accelerated innovation in digitalisation and MissionZero solutions. 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.

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 AG, 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.”

Compelling strategic rationale

The combination of FLSmidth and TK Mining creates a business with a total proforma 2020 revenue of DKK 22 billion (EUR 3.0 billion), 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 of the transaction. In addition to the competitive advantages of scale, FLSmidth will be able to offer a stronger value proposition to customers through combined competencies, a wider offering and a more extensive customer reach.

A thorough due diligence by FLSmidth has shown that large cost synergies can be derived from a combined customer approach and service setup as well as pooled innovation, procurement, administrative structure, and optimised geographic footprint. Adding to the value creation through compelling synergies, significant opportunity exists to increase services by transforming TK Mining’s business mix towards FLSmidth’s business mix, hence lifting margins significantly over time.

TK Mining’s offering is an ideal fit with FLSmidth’s sustainability and digitalisation agenda. Combining TK Mining’s solutions for open-pit mining equipment and systems, crushing, grinding, conveying and processing with FLSmidth existing premium offering will strengthen the combined business’ ability to digitalise mines from pit to plant and to reduce their environmental footprint.

Strong financial benefits

The transaction offers an attractive opportunity to create long-term value for FLSmidth’s shareholders, and it is FLSmidth’s expectation that TK Mining will contribute positively to net profit and cash flow from 2024 on a stand-alone basis in addition to net effects from synergies.

Annual run-rate synergies of DKK 370 million (EUR 50 million) are expected by the end of year 2024 and integration costs are expected to be DKK 560 million (EUR 75 million) and will be phased over three years (2022-2024).

Funding of the acquisition is secured through debt facilities which are available beyond transaction close and are expected to be supplemented with equity before transaction close. Given the carve-out nature of this transaction, the project focused nature of the current TK Mining business, and the expected duration of the integration period, FLSmidth plans to seek approval to raise up to 20% new equity at an Extraordinary General Meeting, to be held on 26 August 2021. Based on current market conditions, FLSmidth expects to raise 15-20% new equity. Danske Bank, J.P. Morgan and Nordea have been appointed to assist this process.

Following closing of the transaction, further details on the impact of the acquisition will be communicated, including an update on synergies and timing of integration.

Key transaction highlights

  • Total consideration (enterprise value) of EUR 325 million (DKK 2.4 billion)
  • Equity value of EUR 241 million (DKK 1.8 billion) subject to change between signing and closing
  • EV/EBITDA normalised incl. synergies of less than 4x post integration
  • Expected run-rate synergies of DKK 370 million (EUR 50 million)
  • Expected integration costs of DKK 560 million (EUR 75 million)
  • Expectation that TK mining will contribute positively to net profit and cash flow from 2024 on a stand-alone basis in addition to net effects from synergies
  • Funding secured though debt facilities which are available beyond transaction close and are expected to be partly refinanced by equity before transaction close

The transaction is conditional upon customary regulatory approvals and formal approval by the supervisory board of thyssenkrupp AG and the supervisory board of thyssenkrupp Industrial Solutions AG. The transaction is expected to be completed in H2 2022. Until then the two companies will continue to operate as separate and competing entities. J.P. Morgan Securities plc has acted as sole financial advisor to FLSmidth on this transaction.

FLSmidth’s financial guidance for 2021 is unchanged.

1 It is being negotiated if thyssenkrupp’s Indian mining business will be part of the transaction

2 September 2020 FYE

Source: FLSmidth

 



FDLSmith, Thyssenkrupp, mining, acquisition, transaction, growth, Thomas Schulz, Strategy, Denmark, Martina Merz

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29.07.2021 (470 Clicks)

Strabag acquires Metro Projects in Prague

  • Modernisation of Prague metro station Jiřího z Poděbrad for € 50 million
  • First section of new Line D as part of international consortium
 

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28.07.2021 (405 Clicks)

Nornickel restocks Yenisei River with 200,000 Sturgeon as Part of Biodiversity Initiatives

Nornickel, the world's largest producer of palladium and high-grade nickel and a major producer of platinum and copper, headed by Vladimir Potanin, has released 200,000 Siberian sturgeon fry into the Yenisei river at Prutovsky shallows near the town of Yeniseisk.

 

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28.07.2021 (358 Clicks)

Lundin Mining Announces Agreement to sell remaining Specialty Cobalt Business

Lundin Mining Corporation announced that its 24% owned subsidiary, Koboltti Chemicals Holding Limited, has entered into an agreement to sell its specialty cobalt business based in Kokkola, Finland to Jervois Mining Limited.  This business was no longer strategic to Lundin Mining following the sale of its interests in Tenke Fungurume in 2016 and the cobalt refinery in Kokkola in 2019.

 

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28.07.2021 (382 Clicks)

SMT Scharf AG reports significant H1/2021 Earnings Growth; Increase of FY 2021 Revenue and Earnings Forecasts

SMT Scharf AG (German Securities Code (WKN) 575198, ISIN DE0005751986) generated significant revenue and earnings growth based on preliminary results for the first half of the year, and is adjusting its previous forecast for the 2021 fiscal year accordingly.

 

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28.07.2021 (379 Clicks)

QRC welcomes State Govt Approval of Metallurgical Coal Mine Extension in Central Qld

The Queensland Resources Council (QRC) today welcomed the State Government’s decision to approve an $82 million extension to the Isaac Plains metallurgical coal mine near Moranbah, calling it a huge vote of confidence in Queensland’s high quality coking coal industry.

 

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28.07.2021 (392 Clicks)

ACCIONA is awarded Sydney Metro West for €1.24 billion

ACCIONA, in consortium with Ferrovial, has been awarded the contract to build the central section of Sydney Metro West, the new underground rail line that runs through a large part of Australia's largest city.

 

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28.07.2021 (440 Clicks)

New Product Manager further increases Wet Processing Resources at Superior

Superior Industries, Inc., a U.S.-based manufacturer and global supplier of bulk material processing and handling systems, announce the appointment of Brett Casanova as its product manager for wet processing. He joins an extensive and diverse group of professionals at Superior who specialize in washing, classifying and dewatering technologies.

 

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18.07.2022 

A firm Hold for Infrastructure Project ‘Le Grand Paris Express’ – Fixing Systems secure Metro Lines 15 and 16A firm Hold for Infrastructure Project ‘Le Grand Paris Express’ – Fixing Systems secure Metro Lines 15 and 16

The major project, the ‘Grand Paris Express’ contributes to the future development of Paris and will double the length of the Parisian metro network by 2030. The ‘Grand Paris Expre...  

#fischerwerke GmbH & Co. KG #Traffic tunnels #fixing technology

18.07.2022 

Evaluation of the Use of field-portable LIBS Analysers for on-site chemical Analysis in the Mineral Resources SectorEvaluation of the Use of field-portable LIBS Analysers for on-site chemical Analysis in the Mineral Resources Sector

Portable laser induced breakdown spectroscopy (pLIBS) is an analytical method for determining the elemental composition of solid material surfaces. Field-portable devices are gaining increasing acce...  

#SciAps, Inc #OLYMPUS EUROPA SE & CO. KG #Measurement technology #exploration #exploratory measurements #field test equipment

21.04.2022 

STEM Career Opportunities for a Climate and Environment compatible SocietySTEM Career Opportunities for a Climate and Environment compatible Society
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STEM professions are in fact vital for the world of tomorrow. Professionals are playing a key role in shaping the transition in energy and raw materials and the ongoing climate action and in so doin...  

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Increasing social Acceptance in the Management of Tailings Storage Facilities (TSF)

Increasing social Acceptance in the Management of Tailings Storage Facilities (TSF)

28. October 2021 (1931 Clicks)

 

#Mining #abandoned mining #Monitoring

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Buchreihe: Dokumentation der technischen Entwicklung bei der RAG

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22. June 2022 (481 Clicks)

Die Aufgabe der Buchreihe „Dokumentation der technischen Entwicklung bei der RAG“ ist es, das in den vergangenen 50 Jahren im deutschen Steinkohlenbergbau erlangte Fachwissen zu sichern, zu verbreiten und künftigen technischen Entwicklungen Impulse zu geben. Über das Sammeln von Daten und Fakten hinaus stellt die auf insgesamt acht Bücher angelegte Reihe wichtiges Fach- und Lehrmaterial für Betrieb, Praxis und Studium dar.  

#RAG Aktiengesellschaft #Mining #underground mining #abandoned mining #Digitisation #ventilators

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13.04.2022 (517 Clicks)

Skanska signs Contract for Work at Wastewater Resource Recovery Facility in NY, USA

Skanska has, as part of a joint venture with R.J. Industries, Inc., signed a ...  

#Skanska #Geotechnics #Supply tunnels #concrete #in-situ concrete #ventilation, dust extraction

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Microtunnel Boring Machine breaks new Ground with mineral oil-free hydraulic Fluids from German Specialists

25.03.2022 (449 Clicks)

Microtunnel Boring Machine breaks new Ground with mineral oil-free hydraulic Fluids from German Specialists

The Saarbrücken civil engineering contractor SaarGrundbau has successful...  

#SaarGrundbau GmbH & Co. KG #Herrenknecht AG #Fluid Competence GmbH #Tunnelling #Supply tunnels #Hydraulics

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09.06.2022 (426 Clicks)

Femern A S and SICE-COBRA sign multi-billion Contract

On Monday 30 May, Femern A/S and SICE-COBRA have signed the contract for the ...  

#Sociedad Ibérica de Construcciones Eléctricas (SICE) #Cobra Instalaciones y Servicios (Grupo Cobra) #Femern A/S #Tunnelling #Traffic tunnels

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23.05.2022 (420 Clicks)

Metso Outotec wins Order for large Iron Ore Pellet Plant in Oman

Metso Outotec has signed an agreement for the delivery of engineering and key...  

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