On July 3, 2012, FLSmidth’s board of directors and Group Executive Management reported that following the approval by Ludowici’s shareholders, and the necessary regulatory and court approvals, the company’s acquisition of the Australian engineering and equipment supply company Ludowici Ltd. was completed. FLSmidth paid A$11 per Ludowici share corresponding to an enterprise value of approximately A$388 million.
Ludowici is a world leading provider of coal centrifuges, vibrating screens and complementary wear resistant products and services for the minerals industries. Headquartered in Brisbane, Australia, and with some 450 of its 1,100 employees, and approximately 65% of its revenue being generated in Australia, the acquisition of Ludowici will significantly expand FLSmidth’s presence in this important mining region. The acquisition will support FLSmidth’s aspiration to expand its customer service offerings as approximately 60% of Ludowici’s revenue is related to services activities, spare parts and consumables.
It is FLSmidth’s strategy to become a market leader in six focus industries: coal, iron ore, fertilizer minerals, copper, gold and cement. The acquisition of Ludowici will allow FLSmidth to substantially complete its coal processing flow sheet and complement its copper and iron ore processing offerings with leading technologies and brands.