Armstrong Energy, Affiliate Plan IPOs Of Up To $91 Million

By St. Louis Business Journal

Armstrong Energy Inc., a Clayton-based coal company led by longtime St. Louis businessman J. Hord Armstrong III that operates mines in Kentucky, and its affiliate, Armstrong Resource Partners, filed plans for twin initial public offerings totaling up to $91 million, according to a filing Wednesday with the Securities and Exchange Commission.

The 5-year-old Armstrong Energy, which sells its coal to electric utility companies for their steam-powered generators, plans an IPO of up to $69 million and to sell its shares on the Nasdaq Global Market, according to a prospectus. Armstrong Energy reported a profit of $6.7 million on revenue of $220.6 million in 2010.

Armstrong Resource Partners, an affiliate of Armstrong Energy that was formed in 2008 to manage and lease coal reserves, also filed an IPO seeking to raise up to $22 million and plans to list shares on the Nasdaq Global Market.

FBR Capital Markets & Co. and Raymond James & Associates Inc. are the underwriters.

A request for comment from Armstrong Energy, which is called Armstrong Coal on its website, was not immediately returned.

Chairman and CEO J. Hord Armstrong III, 70, was chief financial officer at Arch Mineral Corp., a predecessor to Arch Coal, until 1987, when he founded D&K Healthcare Resources, which became a public company in 1992 and was sold to pharmaceutical distributor McKesson Corp. in 2005.

Yorktown Partners of New York is Armstrong Energyâ¿¿s majority owner and will continue to be after the offering, according to the filing.

In addition to Armstrong Energy, St. Louis is home to three other coal companies: Arch Coal, Peabody Energy and Patriot Coal.

Copyright 2011 American City Business Journals

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Copyright bizjournals.com 2010

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