Nasdaq.com
SunCoke Energy Inc.’s operating division SunCoke Energy Partners, L.P. has inked an agreement to purchase Lakeshore Coal Handling Corporation for a proposed price of $29.6 million all in cash. The company will buy all of Lakeshore’s assets, specified liabilities and business operations. Lakeshore is a privately owned subsidiary of Beemsterboer Corporation.
The transaction is anticipated to conclude on Jul 31, 2013. The acquisition is subject to the signing of a definitive agreement and customary closing conditions.
SunCoke Energy’s proposed purchase will increase the company’s distributable cash flow per unit by roughly 6% annually and be immediately accretive to earnings. It plans to retain Lakeshore’s present operations and staff. In fact, Lakeshore offers coal handling and blending services to SunCoke Energy’s Indiana Harbor coke making business.
The addition of the Lakeshore unit to SunCoke Energy’s asset portfolio will boost its presence in the steel value chain. Lately, the company has been steadily venturing into the thriving steel markets of India and China, which are expected to grow 5.9% and 3.5% in 2013, respectively.