Seeking Specialized Mining & Industrials Insight
In a closely fought competition, American Industrial Partners acquires a company for $1.23 billion, a record sale for the firm.
The Challenge
Our private equity client American Industrial Partners (AIP) was weighing the acquisition of Moly-Cop, a division of Australia-based steelmaker Arrium. Moly-Cop produces steel balls to grind ore and has been recognized as the largest supplier of grinding media globally. The sale was a major step in Arrium’s asset sell off. Our client had a sophisticated understanding of Moly-Cop, but needed us to help with specialized insight from seasoned executives on global trends in mining output and the environmental regulatory environment.
To fully evaluate the intrinsic value of the deal, AIP sought Apex Leaders’ help to understand the potential for shuttered mines to reopen as well as the impact that future technologies could have on the acquired business.
Target Advisor Profile
Apex Leaders exercised the upmost discretion, aiming to get as close to the target company as possible without disclosing sensitive details about our client. Ultimately, we mapped the market searching for advisors who would fundamentally change how they viewed this investment, including:
- Formers from MolyCops’ leading competitors
- Strategic formers from the target company
- Mine managers in charge of purchasing
The Search
Apex Leaders sought out industry leaders that could confirm or deny our client’s thesis, address any blind spots and help set them up for success should they chose to move forward with the acquisition.
We were successful in sourcing multiple hard-to-reach expert advisors that could describe for our client the future growth opportunities as well as areas in the industry they should avoid.
“One of our firm-wide mantras is that “victory belongs to the perseverant” and the Apex Leaders team have demonstrated that with aplomb! Thanks so much again.”
Jason Perri,
American Industrial Partners
The Results
AIP engaged five expert advisors in the space, speaking with three on multiple occasions. Three additional advisors were lined up and made available to the client. AIP was also able to foster an on-going relationship with two experts, who are currently advising the client on trends in the space. The client was able to:
- Complete the largest financial deal in its 25-year history
- Connect with two advisors in Australia with an intimate working knowledge of the target company
- Get guidance from one advisor considered to be one of most preeminent iron-ore specialists in the world (manufacturing)
Last Word
After a closely-fought contest for Moly-Cop with a rival PE firm, AIP formally closed the deal. Moly-Cop has been transitioned to our client.
“The sale of Moly-Cop brings certainty and confidence for our customers, suppliers, and employees. We look forward to working with American Industrial Partners.”
John Barbagallo,
CEO, Moly-Cop