Arch Coal To Acquire ICG for $3.4 Billion, $14.60 Per Share (ACI, ICO)

Arch Coal, Inc. ACI and International Coal Group, Inc. ICO today announced that they have signed a definitive agreement under which Arch will acquire all of the outstanding shares of ICG for $14.60 per share, in an all-cash transaction valued at $3.4 billion.  The combined company will be the second largest U.S. metallurgical coal supplier and a top-five overall global coal producer and marketer.  Arch will have a balanced metallurgical and thermal coal portfolio with unparalleled operational diversification in every major U.S. supply basin and the No. 1 or No. 2 position in each of its three core operating regions. "The acquisition of ICG is a significant strategic step that strengthens Arch's position as a world-class, global coal franchise positioned for growth," said Steven F. Leer, Arch's chairman and chief executive officer.  "This transaction will greatly expand our participation in global met markets; provide a powerful platform for future organic met coal production growth; enhance and further diversify our met and thermal coal product slate; extend our operating portfolio into every major U.S. coal-producing basin; and solidify our position as one of the industry's lowest cost producers."