Patriot to buy Magnum Coal
Patriot Coal Corp., created last fall in the spinoff from Peabody Energy Corp., on Wednesday said it agreed to purchase rival central Appalachian coal producer Magnum Coal Co. for $709 million in stock and debt.
The combination of the two coal producers will create a company that sold more than 40 million tons of coal in 2007 with revenue of almost $2 billion, Creve Coeur-based Patriot said in a statement.
“This transaction fits squarely with Patriot’s strategy of growing through synergistic, accretive acquisitons, particularly in the fragmented central Appalachian region,” Patriot Chief Executive Richard M. Whiting said in the statement.
The purchase is subject to approval by regulators and Patriot shareholders and is expected to close around mid-year.
