SunCoke Energy signs definitive agreement to acquire Phoenix Global for $325M

SunCoke Energy (SXC) has entered into a definitive merger agreement pursuant to which SunCoke, a supplier of metallurgical coke and logistics services, will acquire all of the common units of Flame Aggregator, which together with its subsidiaries operates as Phoenix Global, a privately held provider of mission-critical mill services to major steel producing companies, for $325M on a cash free, debt free basis. SunCoke will fund the $325M transaction with existing cash and availability under its undrawn revolving credit facility. Phoenix has invested approximately $72M dollars since 2023 in a major capital investment program. Phoenix’s long-term contracts are complementary with SunCoke’s earnings and cash flow streams. The acquisition is expected to be immediately accretive, and to provide $5M-$10M annually of anticipated synergies. The transaction implies an acquisition multiple of approximately 5.4x on a 3/31/25 LTM Adjusted EBITDA of $61M. The merger agreement, and the transactions contemplated thereby, have been unanimously approved by the boards of directors of both companies and have received the support of a majority of Phoenix’s unitholders. The transaction, expected to be completed during 2H25, is subject to the satisfaction of customary closing conditions.