Molycop trade sale this year

Molycop, which manufactures steel balls used in mining, dominates the global market and held about 80 per cent market share when it was sold last time.

American Industrial Partners is expected to launch the sale of its Australian mining consumables business Molycop towards the end of this year.

Market experts it is most likely to go to a trade sale rather than an IPO, with plenty of international buyer interest.

Morgan Stanley and Record Point are understood to have been hired for a sale.

The company was previously part of the listed mining and steel manufacturing company Arrium that collapsed into voluntary administration.

However, Molycop was considered the jewel in the crown and was purchased by American Industrial Partners for $1.6bn in 2016. The business could now fetch at least $2bn.

Molycop, which manufactures steel balls used in mining, dominates the global market and held about 80 per cent market share when it was sold last time.

Previously interested buyers include Platinum Private Equity, Argand, Cerberus, KPS Capital, Blackstone, Apollo, KKR, Rhone Capital, Carlyle, Sigdo Koppers, TPG and Bain Capital.

By 2016, Arrium had grown Molycop’s annual earnings before interest, tax, depreciation and amortisation from about $160m to $211m.