First Reserve/Blackstone Group

Situation:  Norwest was contracted by First Reserve and The Blackstone Group to provide reasonableness review due diligence services regarding their acquisition of RAG America Coal Holding’s coal operations.

Solution:  Norwest developed a multi-tiered project plan involving the evaluation of coal reserves, mining operations, costs, business plans, and future viability of the fifth largest coal company in the U.S. (65 million tons per year of coal). Operations evaluated consisted of 15 underground and surface mines and 5 coal preparation plants located in Pennsylvania, Wyoming, West Virginia, and Illinois

Result:  The Norwest consulting team’s due diligence results and conclusions were key to Norwest’s client consummating the acquisition, resulting in the formation of Foundation Coal Holdings, Inc.