Concept Mining Inc.

The Company

Concept Mining Inc. (Concept or the Company, including Concept Mining and The Ridge Land Company) is a private, family-owned group of underground and surface metallurgical coal mines with operations spanning more than a century. Concept produced 800,000 metric tons (mt) of metallurgical coal in 2007 and controlled approximately 57 million mt of saleable and recoverable reserves and resources in the Appalachian region of West Virginia.

The Situation

Concept had secured a position as a recognized producer of high-quality, low-sulfur, low-volume metallurgical coal; however, given market pricing conditions and consolidation trends in U.S. coal basins, and in particular in the Appalachian basin, the company principal had been long considering exiting the coal business. The shareholders were seeking an acquirer that shared a vision for the continued growth of Concept while providing challenges and opportunities for the Concept workforce.

The Transaction

Concept retained KPMG Corporate Finance as its exclusive adviser in the sale process. KPMG Corporate Finance conducted a global competitive sale process and identified acquirers that recognized the value in Concept’s coal position, operations, and people. The shareholders selected ArcelorMittal as its acquirer. ArcelorMittal, one of the world’s largest integrated metals and mining companies, acquired Concept to expand its growing footprint in coal in the Appalachian region. Throughout the sale process, KPMG Corporate Finance advised the owner on all aspects of the deal including acquirer identification, strategic positioning, valuation, and deal structure. KPMG’s knowledge, contacts, and relationships with strategic buyers in mining and coal and the ability to manage multiparty discussions and negotiations were fundamental to the success of this transaction.