The sale of TECO Coal and its subsidiaries is part of the company’s restructuring plan. It is expected to be concluded by the end of this year.
The transaction includes a future contingent consideration of $50m if certain coal benchmark prices reach specified levels over the next five years.
TECO Energy plans use the proceeds to offload debt and for general corporate purposes.
TECO Energy CEO John Ramil said: "This transaction will result in a complete exit from the coal mining business.
"TECO Coal has been an important component of TECO Energy’s business mix since the mid-1970s, contributing strong earnings and cashflow for many years."
The company has issued a worker adjustment and retraining notice to facilitate a smoother transition for company operations.
