On August 1, 2025, SunCoke Energy, Inc. (NYSE: SXC), a leading U.S. producer of high-quality metallurgical coke, completed its acquisition of Phoenix Global for $325 million. This strategic move is expected to enhance SunCoke’s position in the steel industry by expanding its service offerings and market reach.
Phoenix Global, operating under Flame Aggregator, LLC, is a privately held provider of mill services to steel producers. The acquisition includes all common units of Flame Aggregator and was financed through a combination of cash on hand and borrowing from SunCoke’s revolving credit facility. The deal was structured as a reverse triangular merger, implying an acquisition multiple of approximately 5.4 times Phoenix’s last twelve months (LTM) adjusted EBITDA of $61 million as of March 31, 2025 .
This acquisition allows SunCoke to diversify its portfolio by adding electric arc furnace operations and gaining access to international markets. The integration of Phoenix’s assets is expected to generate annual synergies ranging from $5 million to $10 million, contributing to operational efficiencies and enhanced service capabilities .
Despite the strategic benefits, the acquisition comes amid challenges in the steel industry, including fluctuating demand and pricing pressures. SunCoke’s ability to leverage Phoenix’s capabilities will be crucial in navigating these industry dynamics and achieving long-term growth.
