Tega Industries, Apollo Funds Consortium to Acquire Molycop in $1.5 Billion Deal

Tega Industries Ltd., in collaboration with affiliates of Apollo Global Management, has signed a term sheet to acquire Molycop, a leading global supplier of grinding media for the mining industry, from American Industrial Partners (AIP). The enterprise value of the deal is approximately $1.5 billion, with the transaction expected to close by December 31, 2025, subject to regulatory approvals and customary closing conditions.

This strategic acquisition will position Tega Industries as a global leader in designing and manufacturing “critical-to-operate” consumables essential for mining, mineral processing, and material handling operations. The combined entity is projected to generate annual revenues of $1.73 billion (around ₹15,207 crore) and EBITDA of $217 million (approximately ₹1,906 crore).

Under the terms of the agreement, Tega Industries will hold the role of controlling shareholder, while Apollo Funds will maintain a significant minority equity stake. The consortium plans to focus on integration during the first two years, leveraging complementary product portfolios to offer advanced mill optimization solutions.

The merged organization will operate 26 manufacturing sites globally, including Molycop’s 13 facilities and three joint ventures. Tega’s existing strong presence in Europe, West Asia, Africa, and Latin America will be complemented by Molycop’s well-established footprint in the United States, Canada, and Australia, creating a more diversified and balanced global network.

Following the announcement, Tega Industries’ share price saw a 4% decline, reflecting market reactions to the significant acquisition.

Furthermore, Tega Industries’ board of directors is scheduled to meet on September 13, 2025, to deliberate on raising funds through the issuance of equity shares, debt instruments, or other eligible securities. Possible fundraising modes include private placement, preferential allotment, or qualified institutional placement (QIP).

This transformative acquisition reinforces Tega Industries’ ambition to lead innovation in mining consumables and enhance its global competitiveness, setting the stage for further strategic expansion.