Tega Industries Expands Global Reach with $1.48 Bn Molycop Deal

In a significant development from Kolkata, Tega Industries has gained national prominence with the announcement of the $1.48 billion acquisition of Molycop, one of the largest grinding-media multinationals globally.

The deal, finalized with Wall Street's Apollo Global Management, is the most significant acquisition by an Indian company in three years, displaying a significant global aspiration from the City of Joy, which is more commonly associated with culture than with commerce.

Under the agreed terms, Tega will hold almost 77% of the special purpose vehicle executing the acquisition, with Apollo funds representing around 23% of ownership. The acquisition is also at an attractive valuation level marked at ~ 8.6x FY25 EBITDA of $172 million, which is an attractive valuation level well below Tega's own trading multiple of 25x EBITDA (TTM) and significantly lower than comparable companies, such as Weir, Metso, Orica and FLSmidth.

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Mehul Mohanka, the Managing Director & Group CEO and the second-generation leader of Tega Industries, is taking a bold move into the global mining consumables arena.  Tega's acquisition of 100-year-old Molycop, a prior American Industrial Partners company, will propel Tega as a keystone mining consumables provider for miners and mills around the world.

This noteworthy transaction illustrates more than economic ambition; India is solidifying its market position in the industrial spine of electrification and the green economy, where reliable, mine inspection, and consumables market solutions will play an important factor in the future.