FLSmidth Divests Air Pollution Control Business to Rubicon Partners
FLSmidth Divests Air Pollution Control Business
FLSmidth, a leading technology and service supplier in the mining sector, has recently disclosed that it has agreed to divest its Air Pollution Control (APC) business to Rubicon Partners. This industrial investment group, based in the UK, is recognized for its strategic acquisition of complex industrial businesses.
Details of the Transaction
The transaction is set to close in the latter half of 2025 and includes vital assets such as intellectual property, technology, employees, and an existing order backlog. This move signifies FLSmidth's strategic shift as it aims to streamline its operations and focus on core business areas.
This divestment follows FLSmidth's prior announcement regarding the sale of its Cement business, showcasing a decisive transition in its business structure. Since 2020, the company has methodically divested various operations related to air pollution control. With this sale, the company anticipates finalizing its divestment process.
Financial Impact and Future Forecasts
Upon the successful closing of this deal, FLSmidth expects to attain a modest net gain from the APC business sale. This gain will be reported under the discontinued operations category in its financial statements, showcasing the company's effort to mitigate potential financial impacts from divesting certain segments.
Importantly, this transaction will not alter FLSmidth’s previously communicated financial outlook for the year. The company remains focused on maintaining stability while adapting its business strategies to improve operational efficiency.
About FLSmidth
FLSmidth is prominently known for providing comprehensive flowsheet technology and services for the global mining industry. The company's mission is to empower its clients to enhance their overall performance while minimizing operational costs and reducing environmental impacts. Their ambitious sustainability initiative, MissionZero, aims for zero emissions in mining by 2030, reinforced by validated Science-Based Targets. FLSmidth is committed to improving the sustainability footprint of the mining industry worldwide and is dedicated to achieving carbon neutrality within their operations by the target year.
About Rubicon Partners
Rubicon Partners has established itself as a hands-on investment firm focused on acquiring complex industrial businesses across the UK and Europe. With over three decades of experience, Rubicon has successfully invested in numerous companies within manufacturing, distribution, and service sectors, with transaction values from £15 million to £250 million. The firm emphasizes creating long-term value by collaborating closely with company management to enhance operational performance and explore strategic growth opportunities.
Frequently Asked Questions
What type of business is FLSmidth divesting?
FLSmidth is divesting its Air Pollution Control (APC) business to Rubicon Partners.
When is the expected close date for the divestment?
The transaction is expected to close in the second half of 2025.
Will the divestment impact FLSmidth's financial guidance?
No, the transaction will not change FLSmidth’s previously communicated financial guidance for the full year 2025.
What is FLSmidth's sustainability initiative?
FLSmidth's sustainability initiative, MissionZero, aims for zero emissions in mining by 2030.
What is the focus of Rubicon Partners?
Rubicon Partners focuses on acquiring complex industrial businesses and creating long-term value through strategic collaboration.
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