The Richmond-headquartered miner also purchased IRP's affiliated companies. The total price tag on the all-cash deal was $US475 million.
James River financed the transaction with proceeds from its recent sale of 7.6475 million common stock shares, $230 million aggregate principal amount of its 3.125% convertible senior notes due 2018, and $275 million aggregate principal amount of its 7.875% senior notes due 2019.
Privately held IRP operated nine mines in southern Western Virginia and eastern Kentucky, including underground operations, with total production of about 1.9 million tons in 2010, including 1.2Mt of metallurgical coal.
James River said earlier this year that the acquisition of IRP and L&K would be made “free of debt”, while it secured $375 million of financing from Deutsche Bank and UBS to help fund the takeover deal.
Chairman and chief executive officer Peter Socha called the deal a transformative transaction for James River, which covers several strategic areas.
“It increases our offerings of metallurgical coal,” he said.
“It provides us with greater access to international seaborne coal markets. It provides us with one of the most respected coal brokering and trading operations in the United States.”
The consolidated company of IRP, L&K and other associated entities generated revenues of $490 million in 2010, plus pro-forma earnings before interest, tax, depreciation and amortisation of $84.8 million.
James River Coal, which was the sixth-largest US producer before the acquisition, produces and sells bituminous, steam and industrial-grade coal through its six operating subsidiaries in eastern Kentucky and southern Indiana.
