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Privately-held IRP operates nine mines in southern Western Virginia and eastern Kentucky, including underground operations, with total production of about 1.9 million tons in 2010 including 1.2Mt of metallurgical coal.
JRC said the acquisition of IRP and L&K would be made “free of debt”, while it secured $375 million of financing from Deutsche Bank and UBS to help fund the takeover deal.
JRC chairman and chief executive officer Peter T Socha called the deal a transformative transaction for the company, which covers several strategic areas.
“It increases our offerings of metallurgical coal,” he said.
“It provides use with greater access to international seaborne coal markets. It provides us with one of the most respected coal brokering and trading operations in the United States.”
With the definitive agreement for the purchase signed, JRC expects the acquisition to close during the first half of 2011.
The consolidated company of IRP, L&K and other associated entities generated revenues of $490 million in 2010, plus pro-forma earnings before interest, tax, depreciation and amortisation of $84.8 million.
