REFCO Group Ltd. a provider of execution and clearing services for exchange-traded derivatives and an independent derivative brokers, announced this week that it plans to acquire the global brokerage operations of Cargill Investor Services for $208 million in cash and future contingent cash payments of between $67 million and $192 million, based on performance of the acquired operations.
The transaction will enable REFCO and CIS to consolidate strategies that focus on providing global clients with non-conflicted access to exchange-traded derivative and related brokerage markets.
“We are delighted by the agreement REFCO has reached with Cargill Investor Services,” said Phillip Bennett, president and chief executive officer of REFCO, in a statement. “We have always had the greatest regard for the CIS team and their business model, which is highly complementary to our own. The combined operations of REFCO and CIS will provide our clients with enhanced capabilities in markets that are of increasing importance globally. We are particularly proud to now include Cargill among our major clients.”
Chairman and Chief Executive Officer of Cargill Warren Staley said in a news release, moving the CIS business to REFCO fits well with REFCO’s intent to expand its business.
“We know that our customers will be well served because REFCO’s commitment to client service is consistent with the level of service that our customers have come to know and expect from CIS as a Cargill company,” he said.