SunCoke Energy Enters Into Definitive Merger Agreement To Acquire Phoenix Global For $325M On Cash Free, Debt Free Basis

• SunCoke Energy, Inc. to acquire Phoenix Global for $325 million; implies an acquisition multiple of 5.4x 3/31/25 LTM Adjusted EBITDA(1) of $61 million
• Combined business grows and diversifies SunCoke's customer base, adding electric arc furnace operators and international markets
• Acquisition strengthens SunCoke's role as a critical partner in the steel value chain and is expected to achieve ~$5 million to $10 million of annual synergies.
• SunCoke to host conference call and webcast on May 28, 2025, at 11:00 a.m. ET

SunCoke Energy, Inc. (NYSE:SXC) ("SunCoke") today announced that it has entered into a definitive merger agreement pursuant to which SunCoke, a supplier of high-quality metallurgical coke and logistics services, will acquire all of the common units of Flame Aggregator, LLC, which together with its subsidiaries operates as Phoenix Global ("Phoenix"), a privately held provider of mission-critical mill services to major steel producing companies, for $325 million on a cash free, debt free basis. SunCoke will fund the $325 million transaction with existing cash and availability under its undrawn revolving credit facility.

Phoenix offers a well-capitalized, superior asset portfolio, having invested approximately $72 million dollars since 2023 in a major capital investment program. With the addition of Phoenix, SunCoke will be diversifying into electric arc furnace operations, including carbon steel and stainless steel mills, and Phoenix's global footprint will add international markets to SunCoke's portfolio.

Phoenix's long-term contracts are complementary with SunCoke's earnings and cash flow streams, having attractive fixed revenue components and limited direct exposure to commodity price volatility. The acquisition is expected to be immediately accretive, and to provide between $5 million and $10 million annually of anticipated synergies.

The transaction implies an acquisition multiple of approximately 5.4x on a 3/31/25 LTM Adjusted EBITDA(1) of $61 million. The merger agreement, and the transactions contemplated thereby, have been unanimously approved by the boards of directors of both companies and have received the support of a majority of Phoenix's unitholders.