Braemar Shipping Services has acquired the entire issued share capital of Atlantic Brokers Holdings, the holding company for Atlantic Brokers, a broker of physical and financial coal products.
The acquisition of Atlantic by Braemar, which provides services to the shipping, marine, energy, offshore and insurance industries, is worth GBP 4.8 million (USD 6.8 million).
As explained, the duo will expand their combined businesses with this move into new markets by “using Atlantic’s experience and the physical shipping capability and market reach of Braemar.”
“The acquisition of Atlantic marks another step in our stated strategy of growing a diverse maritime business,” James Kidwell, Chief Executive Officer of Braemar, commented.
Being a broker for ICE coal and CME Clearport coal futures and options, Atlantic is regulated by the Financial Conduct Authority (FCA) and is also a member of the National Futures Association of the United States of America (NFA). As Atlantic is regulated by the FCA, the acquisition will enable Braemar to move into the growth area of commodity derivatives broking, according to the company.
Once the acquisition is completed, sellers who are engaged in the business, Tristram Simmonds, Michael Griffin and Kelvin Taaffe, will enter into new service contracts. The transaction terms include lock in mechanisms to incentivize the working sellers to remain with Atlantic for at least three years following completion.
Atlantic will form a new regulated desk within Braemar ACM Shipbroking, enabling the division to offer both paper and physical broking services.
“This is an exciting move for Braemar which promises an entry into the developing brokered commodity futures market… Acquiring Atlantic … will enable effective integration with our existing business and provide rapid expansion opportunities for the futures broking team. It will also complement our growing global dry cargo business,” James Gundy, Chief Executive Officer of Braemar ACM Shipbroking, said.