As part of a broader effort to increase its presence across the steel industry value chain, SunCoke Energy Partners (NYSE:SXCP) announced yesterday it was acquiring the assets, liabilities, and business operations of of Lakeshore Coal Handling for $29.6 million cash.
Lakeshore is a division of privately held Beemsterboer, and currently provides coal handling and blending services to SunCoke Energy's Indiana Harbor cokemaking operations. Where SunCoke Energy is the largest independent producer of coke in the Americas, the partnership is a publicly traded MLP, which manufactures coke used in the blast furnace production of steel.
"We expect this acquisition will be immediately accretive to SXCP's cash flows and earnings," said SunCoke Energy Partners Chairman and CEO Fritz Henderson, "supporting future increases in distributable cash flow per unit." Distributable cash flow per unit is expected to increase by approximately 6% on an annualized basis as a result of the acquisition.
It's anticipated the deal will close on July 31, subject to execution of a definitive agreement and customary closing conditions.