Metso has signed an agreement to divest its grinding media business to Moly-Cop, a portfolio company of private equity firm American Industrial Partners.
The transaction comprises the sale of Metso Spain Holding SLU, including operations in two locations with around 80 employees in Spain (Bilbao and Seville). The estimated turnover of the business in 2018 will be approximately €60 million ($68.5 million).
Sami Takaluoma, President, Minerals Consumables business area at Metso, said: “Metso’s growth strategy in the consumables business is to focus on developing a world-leading global offering. We are confident that our customers and our grinding media team will benefit from this transaction and from the combination of our strong regional know-how with Moly-Cop’s global capabilities.”
Moly-Cop is a leading global manufacturer of grinding media used primarily by global copper, gold, and iron ore producers to break down ore in the primary phase of mineral concentration. Moly-Cop was acquired by American Industrial Partners in January 2017. Only earlier this year, the company received approval to buy forged steel grinding media leader Donhad.
Jim Anderson, Chief Executive Officer of Moly-Cop, said: “Metso has a valued and longstanding reputation as a trusted grinding media supplier for western Europe and northwestern Africa. This acquisition is a great match for Moly-Cop and our strategy moving forward. Metso’s operations and team align perfectly with our global manufacturing network, and this transaction will further enhance our industry-leading value proposition to our customers.”
The transaction is expected to close in December 2018 and is subject to customary closing conditions, including regulatory approvals. The proceeds from the divestment will have no material impact on Metso’s financial results, Metso noted.