Fairmont Supply sold to private equity
Consol Energy reported in its fourth quarter financial statement that it has sold its Fairmont Supply subsidiary.
The energy company said the company received $270 million in cash proceeds from the sale of assets and return on equity investments, including $252 million in cash proceeds from the sale of "an industrial supply subsidiary," coal reserves in the Illinois Basin and other property in Illinois and West Virginia.
The company did not specify how much was paid for Fairmont Supply.
According to the Pittsburgh Business Times, the buyer may have been Tenex Capital Management, a New York-based private equity firm.
According to Consol Energy's most recent 10-K statement, Consol was a customer of Fairmont Supply and accounted for 37 percent of Fairmont's sales in 2013.
Fairmont was part of Consol's "other" segment, which included activity from the sales of industrial supplies, coal terminal activity and various other corporate activities not allocated to its coal or gas segment.
The segment had a loss before income tax of $314 million for the nine months of 2014 compared to a loss before income tax of $233 million for the same period in 2013.
For the first nine months of 2014, outside sales from industrial supplies were $184 million, compared to $162 million for the same period in 2013.
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