GFI Group to acquire leading oil derivatives broker
GFI Group Inc is to acquire Starsupply Petroleum LLC, a leading broker of oil products and related derivative and option contracts.
GFI Group is a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities.
Headquartered in Englewood, NJ, Starsupply had revenues of over USD 23 million in 2004. GFI is acquiring all of Starsupply's North American brokerage operations for just over USD15 million in cash.
The transaction is subject to standard closing conditions and is scheduled to close before the end of September. GFI expects the acquisition at closing to be immediately accretive to earnings per share.
Starsupply has over 30 brokerage personnel and operates nine energy-related desks including petroleum feedstocks, petroleum products, crude oil, petrochemicals, product derivatives, crude derivatives, crude and product options, fuel oil and gas liquids. Starsupply was recently named Energy Risk Magazine's "Oil Products House of the Year" for 2005. In addition to Englewood, Starsupply has offices in White Plains, NY, Norwalk, CT, and Houston, Texas.
Michael Gooch, Chairman and Chief Executive Officer of GFI, said: "We are very pleased to acquire the oil brokerage businesses of Starsupply, with its substantial market position, longstanding reputation for quality service and talented brokerage team. This acquisition is consistent with GFI's strategic vision of combining leading brokerage desks in key markets under our growing, technologically innovative, and highly focused business model."
Donald P. Fewer, Senior Managing Director for GFI in North America, added: "Starsupply's brokerage of leading oil products is highly complementary to GFI's existing services in numerous commodities, energy and shipping markets. We view this acquisition as very timely in light of the increased global activity in the world oil markets, which is expected to continue for the foreseeable future."
Robert Ryneveld, founder and Chief Executive Officer of Starsupply, stated: "I am extremely proud of the business and the reputation that Starsupply has built in our industry during the past 20 years. It has been a team effort involving many dedicated and talented people. I believe that the addition of the Starsupply team to the GFI organization will serve to strengthen and expand GFI's already formidable presence in global energy markets." Ryneveld will continue to serve in the business after the closing.
Background Note: GFI Group Inc. provides brokerage services, market data and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments. Headquartered in New York, GFI was founded in 1987 and employs more than 900 people with additional offices in London, Hong Kong, Tokyo, Singapore and Sydney. GFI provides services and products to over 1,300 institutional clients, including leading investment and commercial banks, corporations, insurance companies and large hedge funds. Its brands include GFI, GFInet and FENICS
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