Skip to main content

FLSmidth sells Cembrit Holding

Published by
World Cement,

FLSmidth has concluded its divestment of all interests in building materials companies with the sale of its shares in Cembrit Holding A/S to a company in the Solix Group AB for DKK1.1 billion. Cembrit is one of the leading distributors and manufacturers of fibre-cement products in Europe.

The buyer is a consortium of investors headed by Solix Group AB. Solix' strategy is to retain and further develop Cembrit, which has been part of the FLSmidth Group since 1927.

The Cembrit sales process was initiated in August 2012, but stalled in August 2013, as it was not possible at the time to find the right new owner of Cembrit. It was decided to postpone the sales process for a period of 3 – 4 years, during which a new Board of Directors, new sales initiatives and productivity improvements would be initiated, a process currently well underway. Recently however, FLSmidth was approached by the Solix Group who presented an attractive unsolicited offer leading to the agreement signed today. The transaction is expected to close in 1Q15.

"It's my firm belief that we on all parameters have reached a satisfactory agreement by divesting Cembrit to a new owner who wants to further develop and grow the business to the benefit of both employees and customers," says Bjarne Moltke Hansen, Group executive Vice President, FLSmidth.

Financial consequences of the sale

The sale of Cembrit is expected to have a positive impact on FLSmidth's profit from discontinued activities in 1Q15 subject to the closing balance.

The purchase price will be paid in three tranches. The first and second tranches will be paid in 1Q15, and the last tranche of DKK125 million will be paid 12 months after the closing date. 

According to IFRS accounting standards, Cembrit will be reclassified as discontinued activities in the Annual Report for 2014 and, consequently, the 2014 group guidance for FLSmidth is adjusted to exclude Cembrit.

As a consequence of the exclusion of Cembrit, FLSmidth's group guidance for revenue in 2014 is technically adjusted to DKK19.5 – 22.5 billion (previously DKK21 – 24 billion). The EBITA margin for the Group is still expected to be 7 – 9% and ROCE to be 11 –13%. The revenue of Cembrit in 2014 is expected to be approximately DKK1.5 billion and the EBITA-margin 3 – 5%.

Adapted from press release by

Read the article online at:

You might also like


Optimisation 2020

Optimisation 2020 provides a unique online forum for cement industry professionals to hear first-hand from experts through a series of exclusive presentations from cement producers and industry experts.

Find out more and register for the series »



World Cement Spotlight with Rockwell Automation

World Cement Editor, David Bizley, sat down with Michael Tay, Advanced Analytics Product Manager at Rockwell Automation to discuss his recent article in World Cement.

Entitled ‘Smooth Sailing’, this article explains how machine learning can help save energy, reduce downtime and predict equipment failures, thus enabling the smooth running of cement plant operations.

Watch the interview now »


High-level control in cement production

Dirk Schmidt and Eugen Geibel, KIMA Process Control, discuss how the methods of High-Level Control (HLC) have been used in the cement industry in the early 2000s and control ever more complex closed-loop-controlled processes where standard controllers fail.


Embed article link: (copy the HTML code below):