Arch Coal gave up its operations in Utah as it agreed to sell Canyon Fuel Company to Bowie Resources. The exit will be worth $435 million when the transaction finalizes in the third quarter of this year. Galena Private Equity Resources Fund will also buy a minority stake on Bowie Resources.
Deutsche Bank and FBR Capital Markets & Company served as financial advisors to Arch Coal, while Morgna Stanley & Company advised Louisville, Kentucky based Bowie Resources.
John W. Eaves, president and chief executive officer of Arch Coal commented on the sale, "The sale of our Utah operations is consistent with our previously announced plan to unlock value for our shareholders by divesting certain non-core thermal coal assets."
He stated that as part of their strategy, Arch Coal is focusing on the optimal way to grow with its current asset base. This will work though expanding Arch Coal's export network, cutting back on capital spending and re-imagining the company's portfolio.
The Skyline mines and Sufco are included in Canyon Fuel Company's operations.
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