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TP ICAP Acquires US Energy and Commodities Broker SCS
Thursday 11 January 2018

11 January 2018 - UK-based wholesale market intermediary firm TP ICAP plc (LSE: TCAP) has acquired US-based energy and commodities broker SCS Commodities Corp, the company said.

SCS has expertise in crude oil futures, soft commodities, petroleum and refined products, natural gas options and crude oil options.

It has 26 brokers who provide clients with continuous coverage of energy markets around the world including pre-trade intelligence and execution expertise of high volume trades, including blocks, inter-commodity spreads and complex option strategies.
 
SCS was founded in 1991. It is being sold by its five partners who together own 98% of the business, and by a corporate entity which owns the remaining 2%.

The primary partners who are responsible for generating revenues will remain with the business after the acquisition and continue to develop it.
 
SCS will become part of TP ICAP's energy and commodities division which provides global coverage of a wide range of energy and commodities products through its leading brands to a diverse client base. The acquisition continues the expansion of the division's specialist execution expertise.
 
The consideration for the acquisition is an initial payment in cash, and further performance related amounts, also in cash, may be made at various dates over the next five years.
 
For the year ended 31 December 2016, SCS made revenues of USD 14.3m and profits before tax of USD 0.8m. At 31 December 2016 it had gross assets of USD 4.2m.
 
TP ICAP brings together buyers and sellers in global financial, energy and commodities markets.

It is the world's largest wholesale market intermediary, with a portfolio of businesses that provide broking services, data and analytics and market intelligence.
Details
Date Published: 11/01/2018
Target: SCS Commodities Corp
Country: USA
Sector: Banking/Financial Services
Type: Corporate acquisition
Financing:
Status: Closed
Vendor:
Buyer: TP ICAP
Comment:
Terms of the deal were not disclosed

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