SXCP’s sponsored company SunCoke Energy will continue to receive coal handling and blending services from Lakeshore for Indiana Harbor cokemaking operations.
SXCP intends to maintain Lakeshore’s current operations and retain existing staff.The acquisition is expected to contribute $4m in distributable cash flow or $0.12 per unit for SXCPunit holders on an annual basis.
Additionally, the transaction is likely to be immediately accretive to cash flows and earnings of SXCP, generating about $5m in EBITDA on an annualized basis.
DTE Energy Company, which holds a 15% interest in SunCoke’s Indiana Harbor cokemaking operations, allocated its Lakeshore buyout rights share to SunCoke for cash consideration of $1.8m.
SunCoke Energy manufactures coke used in the blast furnace production of steel and independently produces metallurgical coke.
