Aalborg Portland again wholly-owned by FLS

Aalborg Portland Holding A/S, a member of the FLS Group, has today signed an agreement with the British cement group, Blue Circle Industries PLC, to buy back the latter's 50 per cent interest in the Danish cement manufacturer, Aalborg Portland A/S. The latter thus again becomes wholly owned by Aalborg Portland Holding with effect from 1 July 2000.

Aalborg Portland Holding's acquisition of Blue Circle's shareholding represents a total investment of GBP 120m or nearly DKK 1.5bn (EUR 195m). Aalborg Portland will maintain its relationship with Blue Circle in a number of markets in which the latter will continue to distribute Aalborg Portland's white and grey cement products. The deal is subject to approval by the German anti-trust authorities which is expected within a couple of weeks.

Strategic match

The investment is in line with the FLS Group strategy of focusing on Aalborg Portland Holding and F.L.Smidth-Fuller Engineering. Full control of Aalborg Portland A/S will facilitate implementation of Aalborg Portland Holding's so-called white strategy which is to strengthen the cement producer's global leadership in the niche market for white cement. In addition, the objective is to defend and develop regional market positions in ready-mixed concrete and grey cement, sharpening the competitive edge through ongoing improvement of logistics and a focused product range.

Financial impact

As announced by FLS Industries in its Stock Exchange Message No. 30 dated 21 July 2000, the acquisition will negatively impact FLS Group and Aalborg Portland Holding earnings before interest and tax (EBIT). The amortisation of goodwill will thereby be increased by DKK 26m for 2000. Complete ownership of the cement activities will make Aalborg Portland Holding financially stronger by providing it with full control of Aalborg Portland's substantial cash flow. The increased amortisation and financial expenses related to the acquisition will reduce earnings before tax (EBT) by some DKK 85m as
already announced in the statement of estimated results for 2000 which was released on 21 July.

In 1999, Aalborg Portland A/S achieved a total turnover of some DKK 1.5bn (EUR 201m) including white cement sales at DKK 400m. The company had a workforce of 735 people. For more information visit the company web sites http://www.aph.dk and http://www.aalborg-portland.dk



FLS Industries A/S
Corporate Public Relations