Molycop owners prepare to float steel business, call in Goldman Sachs

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American Industrial Partners snapped up Molycop, the crown jewel of the Arrium empire, for $1.6 billion in 2016. It is hoping for an IPO worth $2 billion.

Australia’s IPO market is showing signs of life with Molycop’s private equity owners, American Industrial Partners, calling in Goldman Sachs deal makers to take the Newcastle steel manufacturer public.

Since it acquired Molycop, American Industrial Partners has added to the business, acquiring sensor design and development company MILL Trakka last month and Metso’s grinding media business in 2018.Since then, it has tried several times to find a new owner for the business, most notably in late 2020 In previous auctions, Molycop told potential buyers that the company was 3½ times the size of its biggest rival based on installed capacity. Its customers, the company’s bankers added at the time, included the largest and lowest cost copper and gold producers in the world, and had been servicing most of its big clients for 25 years or more.

Since it acquired Molycop, American Industrial Partners has added to the business, acquiring sensor design and development company MILL Trakka last month and Metso’s grinding media business in 2018.

 

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