In a landmark move coinciding with its 50th anniversary, Tega Industries Ltd, in partnership with funds managed by Apollo Global Management, has signed a term sheet to acquire Molycop from American Industrial Partners (AIP) for an enterprise value of approximately $1.5 billion.
This strategic acquisition is set to transform Tega Industries into one of the world’s largest suppliers of “critical-to-operate” consumables used in mining, mineral processing, and material handling, while strengthening its global footprint.
Combined Scale and Financials
Together, Tega and Molycop reported a combined revenue of $1.73 billion (₹15,207 crore) and EBITDA of $217 million (₹1,906 crore) in FY25. EBITDA, which stands for earnings before interest, taxes, depreciation, and amortisation, reflects the combined operational profitability of the two companies.
Mehul Mohanka, MD and Group CEO of Tega, called the acquisition “a momentous occasion” that will accelerate innovation, expand market reach, and enhance the company’s capabilities in serving the mining industry globally. Gaurav Pant, Apollo Partner, noted that the partnership will enable further investment in technology and capabilities, while AIP’s Kim Marvin expressed confidence that the business would be “in excellent hands” under Tega’s leadership.
Transaction Structure and Ownership
Once the deal is completed, Tega Industries will emerge as the controlling shareholder, with Apollo Funds holding a significant minority equity stake. The consortium plans to focus on integration over the first two years, leveraging complementary product portfolios to deliver comprehensive mill optimisation solutions for global clients.
The combined entity will operate 26 manufacturing sites worldwide, including Molycop’s 13 facilities and three joint ventures. Tega’s existing footprint across Europe, West Asia, Africa, and Latin America will be complemented by Molycop’s strong presence in the US, Canada, and Australia, creating a truly global supply and service network.
Funding and Corporate Plans
Tega Industries has scheduled a board meeting on Saturday to evaluate proposals for raising funds to finance the acquisition. The company is considering multiple avenues, including equity, debt, or other eligible securities through permissible routes such as private placement, preferential allotment, or qualified institutional placement (QIP).
About the Companies
- Tega Industries, established in 1976 and headquartered in Kolkata, designs and manufactures critical-to-operate consumables for mining and mineral processing industries. The company is known for its innovative and differentiated product portfolio and operates in over 92 countries.
- Molycop, a century-old company, is a leading supplier of grinding media and chemicals for semi-autogenous grinding (SAG) mills and ball mills, critical for the extraction and processing of minerals such as copper and gold. Molycop serves over 400 mines across 40 countries and is renowned for its manufacturing excellence in the mining consumables sector.
Outlook
With this acquisition, Tega Industries aims to solidify its global leadership in mining consumables while expanding its technological capabilities, operational efficiency, and market penetration. The transaction is expected to close by December 31, 2025, subject to regulatory approvals and customary conditions.
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