Tega Industries Limited on Monday said it has completed the acquisition of Molycop in a consortium with funds managed by affiliates of Apollo Global Management, valuing the target at an enterprise value of about $1.5 billion.
The transaction marks a milestone in Tega’s 50th anniversary year and positions the combined entity among the world’s leading suppliers of ‘critical-to-operate’ consumables for the mining and minerals processing industry. Post-closing, Tega will be the controlling shareholder in Molycop, while the Apollo Funds will hold a significant minority equity stake.
Tega said its priority over the next eight quarters will be operational and business integration. The combination is expected to broaden geographic reach, add 13 manufacturing facilities and multiple joint ventures, and allow the group to offer end-to-end mill optimisation solutions to mining customers worldwide.
On the buy side, Argus Partners and Latham & Watkins LLP acted as legal counsel to Tega Industries and the Apollo Funds. J.P. Morgan and PwC provided advisory services.
On the sell side, Ropes & Gray LLP served as legal counsel and Baker Botts LLP acted as regulatory counsel to Molycop and American Industrial Partners. Goldman Sachs & Co. LLC was the lead financial advisor, while Morgan Stanley & Co. LLC also advised on the transaction.
