Mining and cement equipment and services supplier FLSmidth announced Thursday that it has entered into an agreement to purchase thyssenkrupp’s mining business, TK Mining, for an enterprise value of €325 million, or about $385 million.
“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,” said Thomas Schultz, the CEO of FLSmidth, in a statement. “There is 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.”