SunCoke Energy Partners Completes Kanawha River Terminals Acquisition
SXCP financed this acquisition with a combination of available cash and its existing revolving credit facility.
KRT is a leading metallurgical and thermal coal blending/handling terminal service provider with the collective capacity to blend and Transload more than 30 million tons of coal annually. Due to its strategic river locations and convenient access to highways and railroads, KRT can deliver products to U.S. ports in the Gulf Coast, East Coast and Great Lakes.
KRTs operations are expected to be immediately accretive to SXCP’s cash flows and earnings, generating a projected US$12 million in EBITDA on an annualized basis and contributing an estimated US$6 million, or US$0.18 per unit, to distributable cash flow annually.
SXCP purchased KRT from Traxys North America LLC, an international financing, marketing, distribution and trading company in metals, minerals and mining industries and intends to maintain KRT’s current operations and retain existing staff. This is SXCP’s second acquisition in 2013, the first of which was Lakeshore Coal Handling Corporation, which closed on 30 August 2013.
SunCoke Energy Partners, L.P. is a publicly-traded master limited partnership that manufactures coke used in the blast furnace production of steel and provides coal handling services to the coke, steel and power industries. Our advanced, heat recovery coke making process produces consistently high-quality coke, captures waste heat to generate steam or electricity and reduces environmental impacts. Our coal handling terminals have the collective capacity to blend and transload more than 30 million tons of coal annually and are strategically located to enable material delivery to U.S. ports in the Gulf Coast, East Coast and Great Lakes. Our General Partner is a wholly owned subsidiary of SunCoke Energy, Inc., the largest independent producer of coke in the Americas, with 50 years of coke making experience and an international reputation for leadership, innovation and environmental stewardship in our industry.