LONDON (dpa-AFX) - TP ICAP plc (IAPLF.PK, IAPLY.PK, IAP.L) announced Monday that is has acquired SCS Commodities Corp., an energy and commodities broker based in the US.
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 5 years.
SCS, founded in 1991, 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 has expertise in crude oil futures, soft commodities, petroleum and refined products, natural gas options and crude oil options.
Following the acquisition, 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. The acquisition continues the expansion of the division's specialist execution expertise.
For the year 2016, SCS made revenues of $14.3 million and profits before tax of $0.8 million. At 31 December 2016 it had gross assets of $4.2 million.
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