James River Coal rises on acquisition

March 7 (Reuters) - Shares of James River Coal Co rose about 10 percent before market open on Monday, a day after the coal company agreed to buy metallurgical and steam coal company International Resource Partners LP (IRP)for $475 million in a cash deal.

On Sunday, Richmond, Virginia-based James River agreed to buy IRP from Magnetar Capital's unit Lightfoot Capital Partners LP, to get access to the international seaborne coal markets.

"James River is transforming itself by basically doubling the size of the company and significantly expanding its met coal presence - all at a very reasonable valuation," Brean Murray Carret analyst Jeremy Sussman said in a note to clients.

There has been a surge in coal deals since last year, on rising demand from Asia.

Recent deal activity in the sector includes Alpha Natural Resources $7.1 billion deal to buy Massey Energy Co and Walter Energy's more than $3 billion deal to buy Canadian rival Western Coal Crop .

Sussman said fourth-quarter results announced on Sunday, which lagged analysts' estimates, were affected by higher-than-expected Central Appalachian costs.

The company posted a net profit of $25.9 million, or 93 cents a share, from a loss of $3.2 million, or 12 cents a share, last year.

Revenue rose 8 percent to $162 million.

Excluding items, the company earned 13 cents a share.

Analysts on average were expecting the company to earn 26 cents a share, on revenue of $171.7 million, according to Thomson Reuters I/B/E/S.

James River shares were trading up 12 percent at $22.77 before the bell. They closed at $20.25 on Friday on Nasdaq. (Reporting by Vaishnavi Bala; Editing by Prem Udayabhanu)