SunCoke Energy to Buy Lakeshore Coal Handling for $30 Million
As part of a broader effort to increase its presence across the steel industry value chain, SunCoke Energy Partnersannounced yesterday it was acquiring the assets, liabilities, and business operations of of Lakeshore Coal Handling for $29.6 million cash.
Lakeshore is a division of privately held Beemsterboer, and currently provides coal handling and blending services to SunCoke Energy's Indiana Harbor cokemaking operations. Where SunCoke Energy is the largest independent producer of coke in the Americas, the partnership is a publicly traded MLP, which manufactures coke used in the blast furnace production of steel.
"We expect this acquisition will be immediately accretive to SXCP's cash flows and earnings," said SunCoke Energy Partners Chairman and CEO Fritz Henderson, "supporting future increases in distributable cash flow per unit." Distributable cash flow per unit is expected to increase by approximately 6% on an annualized basis as a result of the acquisition.
It's anticipated the deal will close on July 31, subject to execution of a definitive agreement and customary closing conditions.
The article SunCoke Energy to Buy Lakeshore Coal Handling for $30 Million originally appeared on Fool.com.Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.