SunCoke Energy Buying Phoenix Global In $325 Million Deal

By Amit Chowdhry • Jun 3, 2025

SunCoke Energy announced that it has entered into a definitive merger agreement under which SunCoke (a supplier of high-quality metallurgical coke and logistics services) will buy all of the common units of Flame Aggregator – which together with its subsidiaries operates as Phoenix Global (a privately held provider of mission-critical mill services to major steel producing companies) for $325 million on a cash free / debt free basis. And SunCoke will fund the $325 million transaction with existing cash and availability under its undrawn revolving credit facility.

Phoenix offers a well-capitalized, superior asset portfolio, having invested approximately $72 million since 2023 in a major capital investment program. Through the addition of Phoenix, SunCoke will diversify into electric arc furnace operations, including carbon steel and stainless steel mills. Phoenix’s global footprint will also add international markets to SunCoke’s portfolio.

Phoenix’s long-term contracts are complementary via SunCoke’s earnings and cash flow streams, having attractive fixed revenue components and limited direct exposure to commodity price volatility. The deal is expected to be immediately accretive and to provide between $5 million and $10 million annually of anticipated synergies.

This deal implies an acquisition multiple of approximately 5.4 times on a March 31, 2025, LTM adjusted EBITDA of $61 million. This merger agreement and the transactions contemplated thereby have been unanimously approved by the boards of directors of both companies and have received the support of a majority of Phoenix’s unitholders.

The deal is expected to be completed during the second half of 2025

Advisors/Counsel: Evercore Group is serving as the exclusive financial advisor to SunCoke, and Latham & Watkins is serving as SunCoke’s legal advisor. And Moelis is serving as the exclusive financial advisor to Phoenix, and Gibson, Dunn & Crutcher is serving as Phoenix’s legal advisor.

KEY QUOTE:

“I am excited to welcome Phoenix Global to the SunCoke family. The acquisition of Phoenix is an excellent strategic fit for SunCoke, as it expands and diversifies our customer base and enhances our capabilities as a supplier of industrial services to steelmaking customers. We believe SunCoke’s long-term shareholders will benefit from our disciplined approach to growth. This acquisition of a high-quality asset in an adjacent space provides a platform for organic growth and increased shareholder value by leveraging SunCoke’s solid balance sheet, strong financial profile, technical expertise, and disciplined investment in assets.”

Katherine T. Gates, President and CEO of SunCoke