TECO Energy will now focus only on its regulated electric and gas utility businesses. The sales closure was official on September 21; it was first announced last year.
Under the deal, no up-front purchase payment was required. However, the company will receive future contingent consideration of $60 million should some coal benchmark prices reach outlined levels over the coming five years.
TECO Energy will retain those liabilities related to its employees, including pensions and severance agreements.
The company’s coal arm was first classified as an asset held for sale during the third quarter of 2014.
“TECO Coal was an important component of TECO Energy’s business mix since the mid-1970s, contributing strong earnings and cash flow for many years,” TECO Energy CEO John Ramil said. “We appreciate the dedicated team members at TECO Coal and the contributions they have made to TECO Energy’s success.”