FLSmidth in Negotions to Acquire Ludowici for A$267 Million
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FLSmidth has entered into an agreement (Process Agreement) with the Australian listed company Ludowici Limited to acquire the company for A$267million.
Ludowici is a provider of coal centrifuges, vibrating screens and complementary wear resistant products and services for the minerals industries. Headquartered in Brisbane, Australia, Ludowici has a strong presence in many major mining countries such as Australia, South Africa, India, China, Chile, Peru and the US. The company employs approximately 1,000 people globally and is listed on the Australian Securities Exchange.
Under the Process Agreement, the Board of Ludowici has granted FLSmidth access to perform a confidential due diligence investigation and the parties have agreed to negotiate the terms of a detailed Scheme Implementation Agreement, reflecting the key commercial terms which have been agreed in the Process Agreement.
Ludowici Investments Pty Limited and Julian Ludowici and the other Ludowici Directors, who together control approximately 22 percent of the outstanding shares of Ludowici, have confirmed that, in the absence of a superior proposal, they will support the scheme and, if a Scheme Implementation Agreement is signed, they will vote their shares in favor of the proposed transaction.
It is FLSmidth’s strategy to become a market leader in every major minerals processing segment of which coal, copper and iron ore are three of the prioritized segments. The acquisition of Ludowici will allow FLSmidth to complete its coal processing flow sheet and improve its copper and iron ore offerings with leading technologies and brands.
With some 450 employees and approximately 65 percent of its turnover in Australia, the acquisition of Ludowici will significantly expand FLSmidth’s presence in this important mining region. Furthermore, the acquisition will support FLSmidth’s aspiration to expand its customer services offering as approximately 60 percent of Ludowici’s turnover relates to customer services activities, including spare parts and consumables.
“FLSmidth is proud to have been given this opportunity to continue Ludowici’s 154 year history of providing leading innovative minerals technology to its customers. What GL&V Process was to FLSmidth in copper, Ludowici would be for FLSmidth in coal. Coal is equal in size to all other minerals segments combined in terms of material handled, and with the addition of Ludowici’s products we would be able to offer coal customers a unique One Source solution,” said Group CEO Jørgen Huno Rasmussen.
To stop by FLSmidth’s website, CLICK HERE
To stop by Ludowici’s website, CLICK HERE
