SunCoke Energy Partners LP (NYSE: SXCP) has reached an agreement in principle to acquire the assets, specified liabilities and business operations of Lakeshore Coal Handling Corp. for a proposed purchase price of $29.6m.
This is expected to be an all cash transaction and is anticipated to close on July 31, subject to execution of a definitive agreement and customary closing conditions, said the company on June 26.
Fritz Henderson, Chairman and CEO of SXCP, said: “The acquisition of Lakeshore is consistent with our overall vision to grow SXCP by increasing our presence across the steel value chain. We expect this acquisition will be immediately accretive to SXCP’s cash flows and earnings, supporting future increases in distributable cash flow per unit.”
Lakeshore, located in East Chicago, Ind., is a unit of privately-held Beemsterboer Corp. and provides coal handling and blending services to SunCoke Energy Inc.’s (NYSE: SXC) Indiana Harbor cokemaking operations. SXCP intends to maintain Lakeshore’s current operations and retain its current staff. Coke ovens bake coal into coke for the steelmaking process.
SunCoke Energy Partners is a publicly-traded master limited partnership, which manufactures coke used in the blast furnace production of steel. Its advanced, heat recovery cokemaking process produces consistently high-quality coke, captures waste heat to generate steam or electricity, and reduces environmental impacts. Its General Partner is a wholly owned subsidiary of SunCoke Energy, the largest independent producer of coke in the Americas.