May. 28 at 11:05 AM
$SXC SunCoke Energy signs definitive agreement to acquire Phoenix Global for
$325M
SunCoke Energy has entered into a definitive merger agreement pursuant to which SunCoke, a supplier of metallurgical coke and logistics services, will acquire all of the common units of Flame Aggregator, which together with its subsidiaries operates as Phoenix Global, a privately held provider of mission-critical mill services to major steel producing companies, for
$325M on a cash free, debt free basis. SunCoke will fund the
$325M transaction with existing cash and availability under its undrawn revolving credit facility.
Phoenix has invested approximately
$72M dollars since 2023 in a major capital investment program. Phoenix's long-term contracts are complementary with SunCoke's earnings and cash flow streams. The acquisition is expected to be immediately accretive, and to provide
$5M-
$10M annually of anticipated synergies. The transaction implies an acquisition multiple of approximately 5.4x on a 3/31/25 LTM Adjusted EBITDA of
$61M.
The merger agreement, and the transactions contemplated thereby, have been unanimously approved by the boards of directors of both companies and have received the support of a majority of Phoenix's unitholders. The transaction, expected to be completed during 2H25, is subject to the satisfaction of customary closing conditions.
