Dallas, Texas-based North American Coal Corporation announced Friday that it acquired, through a wholly owned subsidiary, four related companies from members of and entities controlled by the Reed family: Reed Minerals, Inc.; Reed Hauling Inc.; C&H Mining Company, Inc.; and Reed Management, L.L.C. These companies, which will be known as Reed Minerals, are based in Jasper, Alabama and are involved in the mining of bituminous coal. The acquisition was completed for a preliminary purchase price of approximately $62.5 million.
The acquired operations mine and market steam coal and mid-to-high volatile metallurgical coal for sale primarily into the power generation and steel markets. Steam coal is primarily sold to a cooperative association which provides fuel under a long-term contract with a significant US utility. Metallurgical coal is sold to several customers. The acquired companies operate three mines on leased reserves in Central Alabama.