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Agreement for sale of FLSmidth Cement announced, reference company announcement NO. 10-2025
An affiliate of Pacific Avenue Capital Partners (“Pacific Avenue”), a global private equity firm with offices in Los Angeles, USA, and Paris, France, has signed an agreement to purchase FLSmidth Cement.
At FLSmidth Cement the past year has been exciting. We have continued to support customers in their productivity and sustainability journeys, pushed forward on our GREEN’26 strategy, and delivered good financial results – all while diligently seeking a new owner. We are happy to announce that a key milestone in this divestment process was reached today with the signing of an agreement with Pacific Avenue Capital Partners (Pacific Avenue) to purchase FLSmidth Cement.
Pacific Avenue has deep experience executing industrial carve-outs and shepherding them to the next stages of their growth journeys. We are confident their partnership will usher in a strong future for FLSmidth Cement, our customers, employees, and other stakeholders. With an extensive resume in diverse industries, including Building Products and Capital Equipment, this is Pacific Avenue’s initial foray into the cement industry.
Jason Leach, Partner at Pacific Avenue Capital Partners
Why are we being sold?
FLSmidth’s Cement and Mining businesses have been together for many years. For much of that time, there were distinct advantages to having one company serving both industries. Yet, in recent years, the two industries have diverged. Having achieved much progress through pure play and GREEN’26 strategy, new ownership will further empower the business to realise its full potential and deliver on the strategy for growth within its core cement business and adjacent industries.
The sale includes all related employees, assets, intellectual property and technology. Certain legacy contracts and the Air Pollution Control (APC) asset will be retained by FLSmidth.
What happens next?
The acquisition is expected to close in the second half of 2025, subject to customary closing conditions, including regulatory approval from the relevant authorities. The business will continue to execute its current strategy with the same services and support offered to its customers. FLSmidth Cement will transition to a stand-alone entity with more resources and capital available to complete the carve-out, drive growth, and pursue strategic investments in partnership with Pacific Avenue.
The company announcement from FLSmidth can be found here: Company Announcement