ST. LOUIS — Arch Coal Inc., one of the nation's biggest coal producers, said Thursday it will pay $364 million for the smaller Vulcan Coal Holdings LLC, the corporate parent of Triton Coal Co.
Triton, the nation's seventh-largest coal producer, operates two mines in Wyoming's Powder River Basin, which Arch said was the nation's largest and fastest-growing coal supply region. The North Rochelle and Buckskin mines last year produced a combined 42.2 million tons of coal, with a reserve base of roughly 744 million tons.
St. Louis-based Arch said it expects the transaction to boost its earnings and cash flow immediately and increase Arch's Powder River reserve base to 2.1 billion tons from 1.4 billion tons.
Triton had total revenues of $289.2 million last year.
Under the deal, which requires regulatory approval, Arch expects a small reduction in administrative staff but anticipates that "the great majority of the Triton work force" will keep their jobs.
The boards of Arch and Vulcan have approved the transaction.
By acquiring Vulcan, Arch — provider of fuel for about 6 percent of the electricity generated in the United States — will account for about 150 million tons of coal sales yearly.
Arch ranks second nationally to St. Louis-based Peabody Energy, which sold 198 million tons of coal last year and provides fuel for about 9 percent of the nation's electricity.