Utah’s business landscape is rich with professionals who have le...Read More
Social Media and Employers: Friends or Enemies?
The Case for HSAs
Time to Show Up
Make a Move
In the Lab
Rent to Own
Back from the Dead
A Breath of Fresh Air
Travel & Tourism
Headwaters Incorporated (NYSE: HW), a building products company dedicated to improving lives through innovative advancements in construction materials, announced that it completed the sale of its remaining eight coal cleaning facilities to Bowie Refined Coal, LLC and its affiliates (“BRC”) effective January 16, 2013.
Under terms of the sale, BRC agreed to pay Headwaters potential royalties and deferred purchase price totaling up to $43.7 million over approximately eight years, subject to BRC’s production of coal products. BRC also assumed certain plant liabilities, including lease and reclamation obligations. Payment of royalties and deferred purchase price based upon production is currently scheduled to begin in the latter part of calendar 2013.
As a part of the sale transaction, Headwaters committed to identifying one million tons of feedstock over the next 30 months for one of the facilities sold. Headwaters is subject to a $7 per ton liability for each ton that is not identified. Headwaters will work actively with BRC to secure feedstock to meet the commitment.
“We are pleased to have completed the sale of all of our coal cleaning facilities,” said Kirk A. Benson, chairman and chief executive officer of Headwaters. “In addition to eliminating a distraction from our light building products and heavy construction materials business, this transaction generates cash to further strengthen our balance sheet.”