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Addcar has been a wholly owned Arch subsidiary since the International Coal Group acquisition in 2011.
Kentucky-based Addcar’s primary business is manufacturing, servicing and operating highwall mining equipment.
“The divestiture is consistent with our previously announced and ongoing efforts to monetise non-core assets,” Arch president and CEO John Eaves said.
“With this sale we are continuing to sharpen our focus on our core competencies – mining and marketing coal.”
UGM had previously been an Addcar distributor.
The sale includes all licences, patents and technologies related to the Addcar highwall mining system and its manufacturing facility in Ashland, Kentucky.
Also included in the sale are all existing contract mining and equipment lease agreements.
UGM will pay Arch the $21 million during 2014 in three instalments.
Additional terms of the deal have not been disclosed.
