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SunCoke Energy Partners to Acquire Lakeshore Coal Handling
06/26/2013 - SunCoke Energy Partners, L.P. 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 US$29.6 million.
SunCoke Energy Partners, L.P. (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 US$29.6 million. This is expected to be an all cash transaction and is anticipated to close on 31 July 2013, subject to execution of a definitive agreement and customary closing conditions.
Fritz Henderson, chairman and chief executive officer 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 (SXC) Indiana Harbor cokemaking operations. SXCP intends to maintain Lakeshore’s current operations and anticipates retaining its current staff. As a result of the Lakeshore acquisition, distributable cash flow per unit is expected to increase by approximately 6 percent on an annualized basis.
SunCoke Energy Partners, L.P. 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, Inc., the largest independent producer of coke in the Americas, with 50 years of cokemaking experience and an international reputation for leadership, innovation and environmental stewardship in our industry.
