Kolkata-based Tega to acquire Molycop US in $1.5bn deal

MUMBAI: Kolkata-based Tega Industries with a marketcap of Rs 13,800 crore will acquire Molycop, a 107-year-old US grinding-media supplier, for $1.5bn in consortium with Apollo Funds. The deal makes Tega a global leader in “critical-to-operate” mining consumables.
The deal brings together two companies that make different but related mining products. Tega makes parts like protective liners for giant grinding machines, cyclone filters that separate materials, large screens, and conveyor belts. Molycop makes the heavy balls and rods that crush rock, special metal castings that last longer, and chemicals that help separate valuable minerals. Apollo will hold a minority stake, blending equity-debt funding. Tega’s board meets Sept 13 to weigh fresh fund-raising—equity, debt or hybrids via QIP, choosing preferential-allotment or other modes.


For Mehul Mohanka, CEO, the 50th-anniversary deal follows decades of acquisitions (Hosch, Losugen, McNally Sayaji) and global expansion (plants in India, Australia, South America, Africa). “With this strategic acquisition, and in partnership with Apollo Funds, we will accelerate innovation, greatly expand market reach and create significant value for our customers,” he said.


Integration which will take 8 quarters will align ops, product-development and after-sales. The deal will widen Tega’s reach and make it stronger in Europe/Africa/Middle-East/CIS; Molycop is entrenched in US, Canada, Latin America and Australia. The merged entity will have 26 plants, 400+ mine-customers in 40 countries. FY25 financials show Tega revenue Rs 1640 crore, EBITDA Rs 340 crore, PAT Rs 200 crore, order-book Rs 1030 crore, implying balance-sheet strain. Molycop CEO Jim Anderson called the tie-up “an exciting new chapter.” AIP, the seller, deemed it “in excellent hands.” For Kolkata, it is a rare billion-dollar industrial foray onto the global stage.