Tega Industries, in consortium with funds managed by affiliates of Apollo, entered into a term sheet on September 10 to acquire Molycop, a leading global supplier of grinding media for the mining industry. The deal, valued at $1.5 billion, will be executed with American Industrial Partners (AIP) as the seller.

According to a stock exchange filing, the company noted, “This strategic, complementary acquisition 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 combined strength of Tega Industries and Molycop is reflected in their most recent audited financial results. Together, the two entities reported $1.73 billion (₹15,207 crore) in revenue and $217 million (₹1,906 crore) in EBITDA, prior to adjustments for minority interests.

Commenting on the transaction, Mehul Mohanka, Managing Director and Group CEO of Tega Industries, said, “With this strategic acquisition, and in partnership with Apollo Funds, we will accelerate innovation, greatly expand market reach and create significant value for our customers.”

Gaurav Pant, Partner at Apollo, added, “This transaction will position the Molycop and Tega organisations to invest in additional technology and capabilities, and to continue their commitments to deliver reliable, high-quality products and solutions to industrial customers. For Apollo, this is a great example of pairing strategic equity and debt within a flexible, hybrid solution, and we look forward to partnering with the talented management team of Molycop and Tega to accelerate growth and drive value creation.”

News source: Money Control

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