PE-backed Moly-Cop buys Valmont’s Australian mining consumables business

Moly-Cop, a portfolio company of American Industrial Partners, has acquired Valmont Industries Inc’s Australian mining consumables business. No financial terms were disclosed. The deal is expected to close by the end of 2017.


OMAHA, Neb., Aug. 24, 2017 /PRNewswire/ — Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure development and mechanized irrigation equipment and services for agriculture, today announced a definitive agreement to sell its Australian mining consumables business to Moly-Cop, a portfolio company of American Industrial Partners, a private equity firm headquartered in the United States. This business, known as Donhad Pty. Ltd., was acquired as part of Valmont’s acquisition of Delta plc in May 2010 and is reported as part of the Company’s Energy and Mining segment, generating $83.1 million in revenues in 2016. The Company plans to use the proceeds from the sale to reinvest in opportunities to grow and improve its existing infrastructure and agricultural businesses. The closing of the transaction is subject to customary conditions and is expected to be completed by the end of 2017, the timing of which is also dependent upon receiving Australian regulatory approvals. No further transaction details were disclosed.
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 is the industry’s innovator and has deep technical knowledge in both the underlying metallurgy of its high-performance products and the specific product application requirements of its customers. Moly-Cop was acquired by American Industrial Partners in January 2017.

American Industrial Partners is an operationally-oriented middle-market private equity firm that makes control investments in industrial businesses serving domestic and global markets. The firm has deep roots in the industrial economy and has been active in private equity investing since 1989. To date, AIP has completed over 70 transactions and currently has USD$4.1 billion of assets under management on behalf of leading pension, endowment and financial institutions.

Valmont is a global leader, designing and manufacturing highly engineered products that support global infrastructure development and agricultural productivity. Its products for infrastructure serve highway, transportation, wireless communication, electric transmission, and industrial construction and energy markets. Its mechanized irrigation equipment for large-scale agriculture improves farm productivity while conserving fresh water resources. In addition, Valmont provides coatings services that protect against corrosion and improve the service lives of steel and other metal products.