Arch Coal today announced the completion of its acquisition of International Coal Group Inc, for $3.4 billion.
Prior to the merger, Arch had acquired approximately 92 percent of ICG's outstanding shares of common stock in connection with its previously disclosed tender offer. ICG has now become a wholly owned subsidiary of Arch.
"We are pleased with the swift and successful completion of the ICG transaction, which will add tremendous value for Arch's stakeholders in the coming years," said Steven F. Leer, Arch's chairman and chief executive officer.
"This acquisition extends Arch's reach into every major US coal supply basin, enhances our low-cost and leadership position in core operating regions and creates a world-class global thermal and metallurgical coal franchise poised for growth."
With expected pro forma metallurgical sales of 11 million tons in 2011, Arch becomes the second largest US metallurgical coal producer and a top 10 global supplier to steelmakers. By capitalizing on expansion opportunities, Arch expects to boost its metallurgical coal output to nearly 15 million tons by 2015 to serve under-supplied, growing global metallurgical markets.
The acquisition also adds nearly 13 million tons of low-cost Appalachian thermal production to Arch's vast domestic thermal coal portfolio, solidifying the company's No. 2 position among US-based coal miners and creating the US coal industry's most diversified producer.
"We believe this acquisition – the largest in company history – offers a compelling value proposition for our employees, our customers and our investors," said Leer. "The combined company will serve a broad mix of power producers, steelmakers and industrial accounts here and around the world – offering a vast metallurgical and thermal coal product slate and a wide range of logistical options for delivery."
