Photo by: Reuters
PERTH (miningweekly.com) – The liquidators of ASX-listed Arrium have divested of the company’s mining consumables division Moly-Cop, in a deal valued at $1.23-billion.
The deal was struck with American Industrial Partners, and followed a competitive dual track divestment process that considered both an initial public offering of Moly-Cop on the ASX and a broad trade sale process.
“The sale of Moly-Cop is the first step in realising value with the sales process for the remainder of the Arrium business ongoing,” said KordaMentha partner Scott Kershaw.
Moly-Cop CEO John Barbagallo said on Friday that the sale of the division brought certainty and confidence for customers, suppliers and employees.
“The Moly-Cop team looks forward to working with American Industrial Partners to grow the business and achieve our long-term strategic goal of being the leading supplier of consumable products to the mineral processing industry.”
Moly-Cop’s products are primarily sold to customers in North and South America and Australasia. The company is the largest supplier of grinding media by sales volumes in these regions, and is the largest supplier globally by production capacity.
In 2016, the division reported sales and earnings before interest, taxes, depreciation and amortisation of $1.02-billion and $156-million respectively.
The transaction will likely be completed in early 2017, subject to regulatory and lender approvals.
Arrium went into voluntary administration in April last year after lenders rejected a recapitalisation plan aimed at levelling its debt in a low iron-ore price environment.
Earlier in the week, Federal Industry Minister Greg Hunt revaled that South Korean steel major Posco had expressed a “strong desire” to buy the Whyalla steelworks, which forms part of Arrium.