James River to Buy International Resources for $475 Million
James River Coal Co. (JRCC), an owner of mines in Appalachia and the Illinois Basin, is buying International Resource Partners LP for $475 million to boost coal output and shipping.
James River, based in Richmond, Virginia, is buying a company with mines that produced 1.9 million tons of coal last year, it said in a PR Newswire statement. Most of that was so- called metallurgical coal.
The purchase includes Logan & Kanawha Coal Co., a coal marketing and trading business that helped boost International Resource’s total of coal shipped to 3.7 million tons. International Resource had 2010 consolidated revenue of $490.3 million.
James River secured $375 million in financing from Deutsche Bank AG and UBS AG for the deal.
International Resource was owned by Kayne Anderson Energy Development Co., Lightfoot Capital Partners, Tortoise Capital Resources Corp. and a firm controlled by its chairman, James Harless.
Shares of James River fell 2 cents to $20.25 on March 4. They’ve dropped 20 percent this year after a 37 percent gain in 2010.
Deutsche Bank was James River’s financial adviser and UBS advised International Resource.
(James River will hold a conference call March 7 at 9 a.m. eastern time at (1)(877)-340-2553 or www.jamesrivercoal.com
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