Chile’s SK Buys Belgian Mining Supplier

Just a day after offloading its white goods unit, Chilean conglomerate Sigdo Koppers has agreed to purchase Belgian portfolio company Magotteaux for EUR550m ($790m). The two deals allow SK to turn its focus more completely on mining services, and is the largest-ever acquisition by a Chilean targeting assets outside of LatAm, according to Dealogic data. SK emerged the winner in a sale process started earlier this year by Swedish private equity firm IK Investment Partners for the manufacturer of crushing and grinding parts for use in the mining and cement industries. A group of international interests had been bidding for Magotteaux, including Australian miners OneSteel and Orica and private equity investors including Advent International and Doughty Hanson. BNP Paribas advised Sigdo Koppers, and is supplying an 18-month bridge loan to fund the acquisition. Morgan Stanley advised IK. SK has interests in the construction, industrial and transportation sectors, which are mostly related to the mining industry. The deal follows the strategic shedding of SK’s CTI white goods unit to Sweden’s Electrolux for $691.5m, announced Monday.