SunCoke Energy buys Phoenix Global for $325 million

LISLE, Ill. - SunCoke Energy, Inc. (NYSE: SXC), a key player in the metallurgical coke sector with a robust financial health score of "GOOD" according to InvestingPro analysis, has announced the definitive acquisition of Phoenix Global, a privately held service provider to steel producers, for $325 million. The company, currently trading below its Fair Value, has demonstrated strong operational efficiency with a healthy current ratio of 2.4x. The transaction, which is expected to close in the second half of 2025, aims to broaden SunCoke’s customer base and market reach, particularly among electric arc furnace operators and in international markets.

The deal, which is funded through existing cash and an undrawn credit facility, values Phoenix Global at approximately 5.4 times its last twelve months (LTM) Adjusted EBITDA as of March 31, 2025. This acquisition strategy aligns with SunCoke’s strong financial position, reflected in its attractive P/E ratio of 8.03 and substantial free cash flow yield of 17%. Phoenix Global has invested around $72 million since 2023 in capital improvements, strengthening its asset portfolio. For deeper insights into SunCoke’s valuation metrics and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro.

Katherine T. Gates, President and CEO of SunCoke, expressed enthusiasm for the strategic fit the acquisition provides, citing the diversification of SunCoke’s customer base and enhancement of its industrial service capabilities. The acquisition is anticipated to be immediately accretive to earnings, with expected annual synergies ranging from $5 million to $10 million.

The transaction has received unanimous approval from both companies’ boards and majority support from Phoenix’s unitholders. It remains subject to customary closing conditions, including regulatory approvals and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

SunCoke will discuss the acquisition details during a conference call and webcast today at 11:00 a.m. Eastern Time. The call will be accessible via a live webcast and archived for replay on the company’s website.

This expansion is part of SunCoke’s disciplined growth strategy and leverages the company’s solid financial position, technical expertise, and commitment to asset investment. The company’s shareholder-friendly approach is evidenced by its attractive 5.6% dividend yield and three consecutive years of dividend growth. The acquisition is expected to provide a platform for organic growth and increased shareholder value. InvestingPro subscribers can access 7 additional key insights about SunCoke’s growth potential and financial outlook.

The information contained in this article is based on a press release statement.

In other recent news, SunCoke Energy reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.20, which exceeded analyst expectations of $0.17. The company also reported revenue of $436 million, demonstrating strong operational performance. Despite surpassing EPS forecasts, the company’s stock experienced a decline, reflecting broader market concerns. SunCoke reaffirmed its full-year consolidated adjusted EBITDA guidance range of $210 million to $225 million. During its 2025 Virtual Annual Meeting of Stockholders, SunCoke Energy saw the election of two directors and the approval of executive compensation. Stockholders also ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. The meeting outcomes underscore SunCoke’s focus on corporate governance and stockholder engagement. The company highlighted its strong liquidity position with $543.7 million available and announced a $0.12 per share dividend payable on June 2, 2025.

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