TP ICAP has just announced a new acquisition, adding to its portfolio of commodities business. The firm acquired SCS Commodities Corp, a firm that is an independent energy and commodities broker in the US.
The target company reported a total of $14.3 million in revenues for the year that ended on December 31st, 2016. Profits before tax for the same period totaled $0.8 million, with the total assets of the firm at the time being valued at $4.2 million.
TP ICAP is not disclosing the full amount that it paid for the acquisition. The deal includes an initial cash payment and a subsequent period of five years of performance-based compensation that will also be paid in cash.
Commodity Trading Unit Growth
TP ICAP has been actively investing in the continued growth of its Energy and Commodities unit that employs over 300 staff globally. The business is headed by Dennis Crum as CEO and Todd Creek as President.
The expertise of SCS is in crude oil futures, soft commodities, petroleum and refined products, natural gas options and crude oil options. The company has a total of 26 brokers who are interacting with clients.
SCS was founded in 1991 by five partners, who together own 98 percent of the company. Another 2 percent were held by a corporate entity that is also selling its share to ICAP. The primary partners will continue to work at the company, working on the development of the business after the acquisition.
Integration Within ICAP
SCS will be integrated into the company’s Energy and Commodities division. ICAP’s unit has been covering base and precious metals, emission credits, crude oil and oil products, electricity, and others.
The company has a global representation in 12 locations, including seven in North America, three in Europe and two in the Asia Pacific region. ICAP Energy provides its services via Nymex execution services, a solution that is supported by the electronic trading platforms of Globex and ICE.