SunCoke Energy, Inc. announced it has entered into a definitive merger agreement to acquire Phoenix Global for $325 million in cash, on a cash free, debt free basis. The acquisition will be funded using existing cash and availability under SunCoke's undrawn revolving credit facility. Phoenix Global is a provider of mission-critical mill services to major steel producing companies.
This strategic acquisition is expected to immediately enhance SunCoke's earnings and provide between $5 million and $10 million annually in anticipated synergies. The transaction implies an acquisition multiple of approximately 5.4 times Phoenix's last 12 months Adjusted EBITDA of $61 million as of March 31, 2025.
The acquisition is a pivotal step in diversifying SunCoke's customer base, expanding into electric arc furnace (EAF) operations, including carbon and stainless steel mills, and adding international markets to its portfolio. Phoenix's long-term contracts, with fixed revenue components and limited direct exposure to commodity price volatility, align with SunCoke's existing business model. The transaction is expected to be completed during the second half of 2025, subject to customary closing conditions.
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