PE-VC Fund Investments
Apollo backs Tega Industries’ $1.5 B buyout of global mining equipment maker Molycop
US-based private equity investor Apollo Management is to back Kolkata-based, publicly listed Tega Industries to acquire Molycop , an Australia-headquartered supplier of grinding media for the mining industry, at an enterprise value of about USD 1.5 Billion.Upon deal completion, Tega Industries will be the controlling shareholder of Molycop, with the Apollo Funds owning a significant minority equity interest.Argus Partners and Latham & Watkins LLP are serving as legal counsel to Tega Industries and the Apollo Funds. In addition, J.P. Morgan and PwC are providing advisory services to Tega Industries and the Apollo Funds.The deal will establish Tega Industries as one of the world’s leading designers and manufacturers of ‘critical-to-operate’ consumables for certain production steps in the mining, mineral processing and material handling industries with an innovative and differentiated product portfolio. The two entities, Tega Industries and Molycop, together delivered USD 1.73 billion (~INR 15,207 crore) in revenue and USD 217 million (~INR 1,906 crore) in EBITDA (as per the latest available annual audited financial statements), reflecting consolidated performance prior to minority interest adjustments.Tega's presence in Europe, the Middle East, the Commonwealth of Independent States, Latin America and Africa will be bolstered by Molycop's activities in the US, Canada, Latin America and Australia. Molycop will benefit from Tega’s expertise and presence in growth areas of EMEA, and the addition of Molycop's 13 manufacturing facilities along with 3 joint ventures will bring Tega closer to its customers with a combined presence in 26 global manufacturing sites.
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