James River said that the acquisition increases its offerings of metallurgical coal and provides the company with greater access to the international seaborne coal markets.
James River chairman and CEO Peter Socha said that this is a transformative transaction for the company and it fills several strategic areas in the company’s corporate portfolio.
In addition to existing cash balances, the company has secured $375m in financing from Deutsche Bank and UBS Investment Bank to pay for the acquisition, which is expected to close in the first half of 2011.
James River mines, processes and sells bituminous steam and industrial-grade coal primarily to electric utility companies and industrial customers.
