MolyCop

Background

MolyCop is the largest producer of grinding media globally with c.1,700 employees and installed capacity of c.1.7 mtpa across 10 manufacturing facilities located in North America, South America, Indonesia and Australia. Many of the facilities are adjacent to the key copper and gold mines in these regions. 

MolyCop was formerly the Mining Consumables division of the Arrium Group. Following the appointment of administrators to the Arrium Group in 2016, the solvent MolyCop business was ringfenced and a sale process was commenced.

Sale process

In order to maximise the value of the MolyCop business, the 333 Capital team, in conjunction with various advisers, considered a range of sale structures. A dual track process, including a potential trade sale or IPO of MolyCop, was selected as the preferred strategy to maximise competitive tension and value. A dual-track process was an attractive strategy for MolyCop given the international exposure, stable earnings profile and potential dividend yield of the business. 

The dual-track sale process commenced in July 2016 with support from Deutsche Bank amongst other legal and due diligence advisers. 

Trade sale track

The trade sale track was structured as a traditional dual phased process involving a global universe of financial sponsors and strategic (trade) buyers.