Insolvent Australian industrial group Arrium Ltd's U.S. based Moly-Cop division has been sold to private equity firm American Industrial Partners for $1.23 billion, two sources close to the deal said, ending a drawn out sale process, Reuters reported. "I can confirm it is American Industrial Partners," one source said. Moly-Cop, which makes steel balls to grind ore and operates mostly in the United States and Latin America, also attracted interest from KPS Capital, a private equity limited partnerships with about $5.5 billion of assets under management. Arrium's advisers, Deutsche Bank and KordaMentha, and its lenders also considered an initial public offering for the profitable Moly-Cop division, which had been excluded from Arrium's restructuring of its steel and iron ore mining businesses in Australia. A public announcement of the deal was expected to be made later on Friday, the second source said. Read more.