FLSmidth and the shareholders of Conveyor Engineering have entered into a stock purchase agreement, which is effective from 1 March 2009.
Conveyor Engineering specialises in the design and supply of major bulk material handling systems for cement, mining and heavy industrial facilities worldwide. The purchase price will depend on the earnings' performance in the coming years.
The acquisition of Conveyor Engineering will enable FLSmidth to continue to strengthen its global growth strategy within the minerals industry while at the same time supporting FLSmidth's cement business.
"This acquisition demonstrates that even in temporary market downturns there are investment opportunities that are so good strategically that they improve shareholder value considerably. Conveyor Engineering's capabilities and technical resources will strengthen FLSmidth's position as world leader in distinctive and specialised material handling solutions," group CEO Jørgen Huno Rasmussen comments.
Established in the early 1950s, Conveyor Engineering is headquartered in Boise, Idaho, USA, with offices in Santiago, Chile, and employs 48 people. In 2008, Conveyor Engineering delivered a turnover of approximately $50m.
Conveyor Engineering's heritage, track record and reputation for providing high-capacity large delivery systems will augment FLSmidth's portfolio of equipment, systems and technology. In addition to high performance, high-tonnage cross-country systems, Conveyor Engineering designs and supplies in-plant conveyors, belt feeders and heap leach stacking systems for the cement and minerals industries.
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