TP ICAP plc completes acquisition of US energy and commodities broker SCS

TP ICAP plc, headquartered in London, has has acquired SCS Commodities Corp, an independent energy and commodities broker based in the US.

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.

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

Founded in 1991, SCS 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, which features blocks, inter-commodity spreads and complex option strategies.

SCS 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 will remain with the business after the acquisition and continue to develop it.

As a result of the transaction, 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 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 ending 31st December 2016, SCS made revenues of $14.3m and pre-tax profits of $800k.