SunCoke Energy Partners LP (NYSE: SXCP) completed its acquisition of Lakeshore Coal Handling Corp. on Aug. 30 from privately held Beemsterboer Corp. for an all cash price of $28.6m.
Located in East Chicago, Ind., Lakeshore has and will continue to provide coal handling and blending services to SunCoke Energy Inc.’s (NYSE: SXC) Indiana Harbor cokemaking operations. SunCoke Energy Partners said Sept. 3 that it intends to maintain Lakeshore’s current operations and retain existing staff.
The Lakeshore acquisition is expected to be immediately accretive to SXCP’s cash flows and earnings, generating about $5m in EBITDA on an annualized basis.
DTE Energy, which holds a 15% interest in SunCoke’s Indiana Harbor cokemaking operations, assigned its share of the Lakeshore buyout rights to SXCP for cash consideration of $1.8m.
SunCoke Energy Partners is a publicly traded master limited partnership which manufactures coke used in the blast furnace production of steel. Its general partner is a wholly owned subsidiary of SunCoke Energy Inc., the largest independent producer of metallurgical coke in the Americas.