Alpha Natural Resources Inc announced that it has completed its acquisition of Massey Energy Company, creating a premier coal company in the United States and a global leader in metallurgical coal supply.
In accordance with the terms of the definitive merger agreement announced on January 29th 2011, Massey stockholders receive 1.025 shares of common stock of Alpha and USD 10.00 in cash for each share of Massey common stock they owned at today's closing. Massey stockholders now own approximately 46% and stockholders of Alpha prior to the merger now own approximately 54% of Alpha on a fully diluted basis.
Alpha Natural Resources now controls the second largest coal reserve base in the US with approximately 5 billion tons in the major coal basins of Central and Northern Appalachia, the Illinois Basin and the Powder River Basin. Furthermore, Alpha's metallurgical reserve base is among the largest and highest-quality in the world. Alpha's diversified assets now include approximately 150 coal mines and 40 preparation plants. Pro forma revenues of USD 6.9 billion in 2010 also rank Alpha second among US coal suppliers.
Mr Kevin Crutchfield CEO of Alpha Natural Resources said “Today's transaction is transformational for Alpha Natural Resources, the Central Appalachian region and the U.S. coal industry. Alpha is now a global industry leader. This combination significantly enhances Alpha's industry position through the inclusion of complementary mining assets and a combined workforce that is 14,000 people strong. We are now twice the people, with twice the energy, powering the world."
Mr Crutchfield continued, "We appreciate the support of our shareholders and all our stakeholders as we create a leader in Central Appalachia. As we go forward following the closing of this transaction, Alpha will maintain its focus on execution on all fronts safety, environmental stewardship, operational excellence and industry leading financial performance driven by consistent free cash flow generation. We will immediately begin building upon our history of successful integrations, including implementing Alpha's unique employee-driven Running Right philosophy of safety and environmental stewardship across the businesses. With this acquisition, Alpha is well-positioned to capitalize on strong global demand growth for both thermal and metallurgical coals, while delivering excellent quality and service to our domestic customers."
