New Delhi, Sept. 10 -- New York-listed private equity firm Apollo Global has teamed up with Indian mining products maker Tega Industries to acquire US-based Molycop, a supplier in grinding media for the mining industry, from American Industrial Partners at an enterprise value of $1.48 billion (Rs 13,002 crore).
The deal also includes a deferred contingent payment of about $120 million (Rs 1,054 crore), Tega Industries said in a stock-exchange filing Wednesday. Apollo will own 23% in the target company while Tega will hold 77%, the Indian company said.
Kolkata-based Tega said the acquisition will establish it 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".
Tega and Molycop together delivered $1.73 billion in revenue and $217 million in EBITDA, as per latest available annual audited financial statements, the Indian company said.
"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," said Gaurav Pant, partner at the American PE firm.
Tega, which was established in 1976 and has a presence in over 92 countries, said Molycop is a leading global supplier of grinding media-used to extract minerals from ore-to the mining industry. These products are critical to extraction and processing of multiple minerals, especially copper and gold.
Molycop, set up in 1917, has a manufacturing and sales network with 13 grinding ball manufacturing facilities. It has a presence in over 40 countries, including the US, Canada, Mexico, Chile, Peru, Australia, and Indonesia. The US company posted revenue of $1.54 billion for the 12 months ended June 2025, down from $1.63 billion in 2023-24 and $1.81 billion the year before.
The US company recorded EBITDA of $172 million for 2024-25. This means the acquisition is being struck at an 8.6x EBITDA multiple, Tega said.
The Indian company also said that it plans to finance the transaction through a mix of equity and debt. It plans to raise $248 million in equity and take on $113 million of debt.
The acquisition is expected to close by December 31, subject to customary conditions precedent and regulatory approvals.
Published by HT Digital Content Services with permission from VC Circle.