Company Announcement no. 24-2007, 25 October 2007
FLSmidth has agreed to sell Densit A/S to Illinois Tool Works Inc.
(ITW). The sale will take place in an all-share deal. The parties
have agreed not to disclose the selling price.
The sale marks the final stages of the Group's ongoing focusing on
Cement and Minerals, which has taken place since 2002 - Densit being
one of the Group's final remaining non-core activities.
The FLSmidth Group formed Densit A/S as an independent company in
1983. Densit employs 68 people, and its turnover in 2006 amounted to
DKK 144m (EUR 19m) with earnings before interest and tax (EBIT) being
DKK 9m.
Densit produces cement-based special-purpose materials used in the
security industry, for wear protection, for industrial flooring and
for reinforcement of offshore drilling rigs and offshore wind turbine
foundations. The company also produces wear-resistant components,
notably for the cement and power generating industries.
ITW, the buyer, designs and produces engineered fasteners and
components, equipment and consumables as well as specialty products
for customers worldwide. ITW's history goes back more than a hundred
years, and today it has more than 750 business units in 49 countries
- including a number of companies in Denmark. In 2006, ITW posted a
turnover of USD 14bn and employed some 55,000 people worldwide.
Densit's day-to-day management is pleased with the choice of buyer
and looks forward to benefiting from the new owner's strong network
in Densit's markets.
The sale of Densit will be positively reflected in FLSmidth's
projected earnings (EBIT) for 2007 at an amount of DKK 80m. Densit's
earnings from 1 January to 31 October 2007 will be included in the
FLSmidth & Co. A/S consolidated accounts for 2007. As a consequence
of the sale, the Group upgrades its expectations for the year's EBIT
and EBT results from formerly DKK 1.45-1.6bn to now DKK 1.55-1.7bn.
Please address any questions regarding this announcement to Group
Executive Vice President Bjarne Moltke Hansen, FLSmidth & Co. A/S at
+45 36 18 10 00.
For further information about FLSmidth, please visit www.flsmidth.com
Yours faithfully
Torben Seemann Hansen
Corporate Public Relations
