Mining and cement equipment and services supplier FLSmidth announced Thursday that it has entered into an agreement to purchase thyssenkrupp’s mining business, TK Mining, for an enterprise value of €325 million, or about $385 million.

“This is a truly transformational deal allowing us to accelerate our growth ambitions in mining by creating a stronger talent pool and one of the world’s largest and strongest suppliers to the mining industry. Our complementary customer base and improved geographic coverage will offer a strong value proposition to our customers,” said Thomas Schultz, the CEO of FLSmidth, in a statement. “There is significant opportunity in transforming TK Mining towards FLSmidth’s business mix and model in which higher margin service business makes up about 60% of revenue.”

FLSmidth believes the transaction will “create a leading global mining technology provider.” The business, operated by the subsidiary thyssenkrupp Industrial Solutions AG, provides mining systems, material handling, and mineral processing solutions, as well as services. TK Mining has engineering and global service centers in 24 countries. In 2020, the business brought in revenue of €780 million (around $925 million).

thyssenkrupp’s move to sell TK Mining is part of its on-going efforts to transform its portfolio and hone its focus on becoming a “high-performing” group of independent businesses, according to a separate company release.

“The successful sale of the Mining business shows that we are pressing ahead at full speed with the transformation of thyssenkrupp and achieving important results step by step. But we have not yet reached our goal. The principle ‘Performance first’ continues to apply. The sale of Mining Technologies makes an important contribution to this” thyssenkrupp CEO Martina Merz stated. “A the same time, I am pleased that we have found a very food new owner in FLSmidth. [They] presented a convincing business strategy and a clear vision for the Mining business. It will give our employees attractive prospects. That was extremely important to us when negotiating the sale.”

FLSmidth and thyssenkrupp expect the sale to close over the next year.