FLSmidth recently entered into an agreement with Ludowici Ltd. to acquire the company for approximately A$267 million ($280 million). Headquartered in Brisbane, Australia, Ludowici is a leading provider of coal centrifuges, vibrating screens and complementary wear resistant products and services for the minerals industries.
Under the agreement, the Board of Ludowici has granted FLSmidth access to perform a confidential due diligence. Ludowici Investments Pty Limited and Julian Ludowici and the other Ludowici Directors, who together control approximately 22% of the outstanding shares of Ludowici, have confirmed that, in the absence of a superior proposal, they will support the deal. Similarly, FLSmidth’s proposed acquisition is subject to a number of conditions, including satisfactory completion of due diligence.
Acquiring Ludowici will allow FLSmidth to complete its coal processing flowsheet and improve its copper and iron ore offerings with leading technologies and brands. With some 450 employees and approximately 65% 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 service offering as approximately 60% of Ludowici’s turnover relates to customer service 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 Jørgen Huno Rasmussen, Group CEO, FLSmidth.
Subject to satisfactory completion of due diligence and agreement on the final terms of the acquisition, FLSmidth and Ludowici anticipate executing the Scheme Implementation Agreement within seven weeks, with the scheme of arrangement being considered by Ludowici's shareholders in May 2012.