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Walter Industries Acquires Taft Coal

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By RUSSELL RAY

The Tampa Tribune

Published: September 9, 2008

TAMPA - Walter Industries, a leading coal producer, has boosted its production and supply of coal with the acquisition of a coal-mining company in Alabama.

The $23.5 million purchase of Taft Coal Sales & Associates, which produces coal in central Alabama, will add 600,000 tons to Walter's annual coal production and will increase Walter's coal reserves by 4.3 million tons.

The deal, which was announced Monday, includes $3.3 million of debt. Privately held Taft, based in Jasper, Ala., employs about 100 people.

The purchase, coupled with the expansion of Tampa-based Walter Industries' coal mines, means Walter will be able to produce up to 11 million tons of coal in 2010. The company expects to produce about 7 million tons this year.

"The proximity of our operations to each other provides excellent opportunities for synergies between the businesses," Walter Industries Chairman Michael T. Tokarz said of the acquisition. "It adds meaningful diversity to Walter Industries' overall coal operations and gives us added flexibility to adapt to changing conditions."
Walter Industries is a major producer of metallurgical coal, which is used in steel production and is in high demand around the world.

Taft's coal reserves include 500,000 tons of metallurgical coal. Walter said it will begin mining those reserves in 2009.

Shares of Walter fell $3.95, or 5.16 percent, to close at $72.53 Monday on the New York Stock Exchange.

Reporter Russell Ray can be reached at rray@tampatrib.com or (813) 259-7870.

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