Shares of coal miner James River Coal surged $2.96, or 14.6%, to $23.21 after the company announced it will acquire privately held International Resource Partners for $475 million, a deal that James River said will help it boost its shipments of metallurgical coal.
Virginia-based James River (JRCC) will also acquire International Resources' Logan & Kanawha Coal Company, a coal marketing business. The all-cash transaction is expected to close in the first half of this year.
''This is a transformative transaction for James River Coal Company. It fills several strategic areas in our corporate portfolio. It increases our offerings of metallurgical coal, James River CEO Peter T. Socha said in a statement. Metallurgical coal is the coal grade most prized by emerging markets steel producers, making the acquisition particularly attractive for James River.
Separately, James River reported a fourth-quarter profit oft $25.9 million, or 93 cents per share, compared with a net loss of $3.2 million, or 12 cents per share, a year earlier. Revenue came in at $162.2 million. Excluding one-time items, James River earned 14 cents a share, but analysts were expecting a profit of 30 cents on revenue of $169.4 million.