SunCoke Energy Inc, a leading supplier of high-quality metallurgical coke and logistics services, today announced a definitive merger agreement to acquire Phoenix Global for $325 million. This acquisition is set to significantly diversify SunCoke’s customer base, enhance its capabilities within the steel value chain, and expand its reach into new international markets.

The transaction, valued at $325 million on a cash-free, debt-free basis, implies an acquisition multiple of approximately 5.4x Phoenix Global’s LTM Adjusted EBITDA of $61 million as of March 31, 2025. SunCoke plans to finance the acquisition using its existing cash reserves and available capacity under its undrawn revolving credit facility.

Phoenix Global, a privately held provider of mission-critical mill services to major steel producing companies, brings a well-capitalized and superior asset portfolio to SunCoke. Phoenix has invested approximately $72 million since 2023 in a major capital investment program, ensuring its operational excellence and technological advancement.

This acquisition marks a pivotal step in SunCoke’s growth strategy, allowing it to diversify into electric arc furnace (EAF) operations, including both carbon steel and stainless steel mills. Phoenix’s established global footprint will also introduce SunCoke to new international markets, further broadening its geographical reach.

A key benefit of this merger is the complementary nature of Phoenix’s long-term contracts with SunCoke’s existing earnings and cash flow streams. These contracts feature attractive fixed revenue components and limited direct exposure to commodity price volatility, promising stable and predictable financial contributions. The acquisition is expected to be immediately accretive to SunCoke’s earnings and is anticipated to generate annual synergies ranging from $5 million to $10 million.

Katherine T. Gates, President and CEO of SunCoke, expressed enthusiasm about the acquisition, stating, “I am excited to welcome Phoenix Global to the SunCoke family. The acquisition of Phoenix is an excellent strategic fit for SunCoke, as it expands and diversifies our customer base and enhances our capabilities as a supplier of industrial services to steelmaking customers.” She further emphasized that the deal would benefit long-term shareholders by leveraging SunCoke’s robust balance sheet, strong financial profile, technical expertise, and disciplined investment in assets, providing a platform for organic growth and increased shareholder value.

The merger agreement has received unanimous approval from the boards of directors of both companies and has garnered the support of a majority of Phoenix’s unitholders. The transaction is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other necessary regulatory approvals. Completion of the acquisition is anticipated during the second half of 2025.