Mechel, one of the leading Russian mining and steel groups, has announced that its subsidiaries have closed the acquisition of 100 percent shares and interests of US entities Bluestone Industries, Inc., a West Virginia corporation, Dynamic Energy, Inc., a West Virginia corporation, JCJ Coal Group, LLC, a Delaware limited liability company and some of its West Virginia affiliates (together "Bluestone"), privately-held West Virginia-based coal businesses engaged in the mining, processing and sale of premium quality hard coking coal.
The aggregate merger consideration amounts to $436 million paid in cash, including $36 million interest paid, approximately 83.3 million preferred shares, plus the assumption of approximately $132 million of net debt.
However, the transaction does not include other businesse activities run by the owners of Bluestone Coal Corp., which include steam coal operations in Kentucky and other non-coal operations.
As part of the deal the parties are expected to float preferred shares as soon as the market conditions are favorable.
Bluestone, which was established in 1971 and is headquartered in Beckley, West Virginia, currently employs approximately 520 people, and has more than 30 customers. In 2008, Bluestone sales of high quality hard coking coal amounted to 2.8 million mt, its total sales amounted to $327 million, while its mine level EBITDA was estimated at approximately $94 million (subject to audit).