Marex to acquire ED&F Man Capital MarketsAugust 1, 2022
- Strengthens the group’s global franchise
- Expands client offering in clearing, metals, fixed income and equities
- Creates leading US franchise and extends global footprint to Dubai and APAC
Marex Group today announces that it has agreed to acquire ED&F Man Capital Markets, the financial services division of ED&F Man Group. ED&F Man Capital Markets has approximately 450 employees across the globe and generated over $235 million of revenues in 2021. The deal is expected to complete by the end of the year, subject to regulatory approvals.
Marex’s longstanding strategy has been to grow the firm and increase diversity of earnings, both by product and geography, and this transaction accomplishes that. This will materially expand Marex’s client offering in Clearing, add to its market-leading Metal franchise and to the nascent businesses in Fixed Income and Equities. It will also extend the firm’s global footprint in Dubai and APAC and create a leading US franchise.
Marex has a strong track record acquiring high quality businesses and, across its portfolio of acquisitions over the past three years, has increased revenues by 25% and profit by 190% versus the respective prior year’s performance, delivering an average portfolio ROE of 20%.
Marex is excited about the growth prospects for the ED&F Man Capital Markets business and how in combination it can better serve existing customers and attract new clients.
Ian Lowitt, CEO of Marex Group, commented: “We are delighted to welcome the ED&F Man Capital Markets team to Marex. The business is an excellent fit with our existing capabilities, and I am excited by the opportunity of working across the significantly strengthened and expanded global footprint. Marex is gaining a high-quality global team. Underscoring our commitment to grow and better serve our clients, this acquisition creates a more competitive, diversified and resilient firm which will provide an enhanced client offering as well as more opportunities for our staff. This is an exciting time for the firm, and we anticipate a bright future for the combined businesses.”
Commenting, Jade Moore, Group Executive Director of ED&F Man, said: “Over the decade since its creation, ED&F Man Capital Markets has grown to become a financial brokerage operating at the heart of the global financial services ecosystem. On completion, a new chapter will start as part of Marex and with the benefit of their market leading platform. The sale of ED&F Man Capital Markets is very much in line with our group’s strategic plan to focus on our core soft commodities trading businesses. Marex will be able to provide the appropriate resources and investment to enable the firm to achieve its full potential and we are therefore confident that this change in ownership will be to the benefit of all our stakeholders.”
Barclays served as financial advisor to Marex on this deal.