Alpha Natural Resources to buy Foundation Coal Holdings
- May 12, 2009
Abingdon-based Alpha Natural Resources has announced it will buy Foundation Coal Holdings, making it the third largest coal producer in the U.S.
The companies valued the all-stock transaction at $2 billion. Together, the companies estimate they would have pro forma revenues of $4.2 billion in 2008.
Combined, the companies would have 59 coal mines, 14 preparation plants and more than 2.3 billion tons of coal reserves. Alpha is the country’s largest supplier of metallurgical coal for the steel industry. Foundation, based in Linthicum Heights, Md., produces thermal coal that is used by electric utilities and has mines and plants in Northern Appalachia, Power River Basin and Central Appalachia.
The merger has been approved by both companies’ board of directors. The deal, expected to close by the end of the year, is subject to shareholder and regulatory approvals.
Michael Quillen, current CEO and chairman of Alpha, will become chairman of the combined company. Kevin Crutchfield, Alpha’s president, will become CEO of the company and Kurt Kost, Foundatin’s president and COO, will become president. James Roberts, Foundation’s chairman and CEO, would become a member of the company’s board of directors.
Last year, Alpha had reached an agreement to be bought by Cliff Natural Resources, but the deal soured amid the recession.