Term Sheet, Tuesday July 2, Coal Meltdown

July 2, 2019, 2:09 PM UTC
F500 2019-PGE Corp
Smoke and steam billows from Belchatow Power Station, Europe's largest coal-fired power plant operated by PGE Group, at night near Belchatow, Poland December 5, 2018. Picture taken December 5, 2018. REUTERS/Kacper Pempel TPX IMAGES OF THE DAY - RC1704BFFD30
Kacper Pempel—Reuters


Apologies for the late send: We've had some technical difficulties while porting to a new content management system.

Coal producer Blackjewel filed for Chapter 11 bankruptcy protection on Monday. 

Hours later the firm’s lawyer warned the company could be forced to liquidate after CEO Jeff A. Hoops Sr.’s bank froze funds likely needed to restructure the business.

“It’s frankly a disaster,” Blackjewel lawyer Stephen Lerner said at a hearing with the U.S. Bankruptcy Court in Charleston, W.Va., per the Wall Street Journal.

The West Virginian firm had filed for Chapter 11 bankruptcy in a filing estimating liabilities upward of $500 million, and assets of between $100 million to $500 million on Monday.

The firm also reportedly shut down two coal mines in Wyoming and sent 700 workers home Monday.

Per the Journal, Blackjewel is the fifth coal company to file for bankruptcy this year, despite President Donald Trump’s attempts to scale back regulation that could hurt the industry. In May for instance, the country’s third largest coal company, Cloud Peak Energy, filed for Chapter 11 bankruptcy.

In the near term though, coal mining jobs have held steady under Trump, per the Bureau of Labor Statistics: the number of coal workers rose from 50,500 in Nov. 2016 to 52,900 (preliminary) in May 2019. The rise has largely been attributed to demand from Europe and Asia—though overall demand has been steadily falling with exports down 7.4% in first quarter of 2019 year-over-year.

But in the long term, the trend of falling coal jobs expected to continue as the commodity comes under pressure against cheaper options such as natural gas.

“I can’t overstate the extreme competition between coal and natural gas,”  Hans Daniels, CEO of Doyle Trading Consultants said last year.

Reminder, please send deals to lucinda.shen@fortune.com until Polina's return next week.


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-Saluda Medical Pty, an Australian medical device company, raised $75 million funding. Boston Scientific Corporation and Redmile Group were the investors.


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-Partners Group acquired a “significant” stake in Blue River PetCare, a Chicago-based operator of veterinary hospitals for companion animals. Financial terms weren't disclosed.

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-A&R Logistics, a portfolio company of Wind Point Partners, acquired Blue Water Plastic Transport, a St. Clair, Mich.-based provider of specialty bulk transportation and logistics services to the plastics industry. Financial terms weren't disclosed.

-Marco Group International, a portfolio company of The CapStreet Group, acquired Manus Abrasive Systems, an Edmonton, AB based manufacturer and distributor of surface preparation equipment, abrasive materials, and consumables. Financial terms weren't disclosed.

-Alpine Investors invested in Best Home Services, a Naples, Fla.-based HVAC, plumbing service and repair business. Financial terms weren't disclosed.

-OpenGate Capital acquired Duraco Specialty Tapes, a Forest Park, Ill.-based B2B manufacturer of specialty tapes, from Essentra. Financial terms weren't disclosed.

-Reliable Medical Supply, a portfolio company of Seven Hills Capital, acquired Med City Mobility, a provider of complex rehab technology and durable medical equipment. Financial terms weren't disclosed.

-ALM, a portfolio company of EagleTree Capital, acquired General Counsel Summit, a Sydney, Australia-based event for in-house counsel, from Connect Media. Financial terms weren't disclosed.

-SARORAS Private Capital invested in Ninth Wave, a New York-based firm focused on secure data connectivity between financial institutions and third-party applications. Financial terms weren't disclosed.

-H.I.G. Europe acquired a controlling stake in Metalprint, an Italian maker of forged brass and aluminium industrial components. Financial terms weren't disclosed.

-VLS Recovery, a portfolio company of Aurora Capital Partners, acquired Tubal-Cain‘s cleaning and repair division as well as its industrial services division with locations in Port Arthur, Texas and Lake Charles, La. Financial terms weren't disclosed.

-Dunes Point Capital invested in Unified Door and Hardware Group, a Pennsauken, N.J.-based provider of doors and hardware. Financial terms weren't disclosed.

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-Meridian Adhesives Group, a portfolio company of Arsenal Capital Partners, acquired PolyCom Industries and affiliate Eco Dispersions, Dalton, Ga.-based industrial adhesives and coatings makers. Financial terms weren't disclosed.

-Transworld Systems, a portfolio company of Platinum Equity, acquired the financial services unit of Altisource Financial Services including Nationwide Credit. Financial terms weren't disclosed, though previously the deal was valued at $44 million.

-Medin Technologies Inc, a portfolio company of Seven Point Equity Partners, acquired Advantage Manufacturing Technologies, a Monroe, Wash.-based maker of orthopedic implants. Financial terms weren't disclosed.

-BC Partners agreed to acquire a majority stake in Synthon International Holding, a Netherlands-based developer of complex generics and hybrid medicines.


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-Aramco, Saudi Arabia oil giant, is once again chatting with investment bankers after putting an IPO on hold months earlier, per Bloomberg citing sources. Read more.

-Zhongliang Holdings Group, a Shanghai-based real estate developer plans to raise up to HK$3.54 billion ($453 million) in an offering of 530 million shares in Hong Kong. Read more.

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-Aterian Investment Partners acquired Hain Pure Protein, Lake Success, N.Y.-based Hain Celestial’s chicken and turkey business, for $80 million.

-L Catterton has agreed to sell SteelSeries, a global gaming platform, to Axcel. No financial terms were disclosed.

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-Texas Pipe & Supply agreed to acquire MultAlloy, J&J Alloy, and J&J Bar operations, from FloWorks International, a portfolio company of Clearlake Capital. Financial terms weren't disclosed.

-Sunbelt Transformer, a portfolio company of Trilantic North America, acquired with Solomon, a Solomon, Ka.-based provider of refurbishment, repair and salvage services for electrical transformers, from Oaktree Capital Management.


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 Lucinda Shen compiled today's Term Sheet. Reach her here.

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