International Assets Holding Corporation, a New York-based financial services group and Missouri-based FCStone Group, an integrated commodity risk management company have signed a definitive agreement to merge in a share swap that creates a combined company with a market capitalization of approximately $260 million. The combined company is expected to have an annual revenue base of approximately $411 million, with assets valued at $2.3 billion, and shareholders equity of $253 million.
Under the merger agreement, FCStone common shareholders will receive .2950 shares of International Assets common stock for each share they own. International Assets’ current stockholders will own approximately 52.5% of International Assets following the merger and FCStone’s current stockholders will own the remaining approximately 47.5%.
Sean O’Connor, who will be Chief Executive Officer of the merged company, said: International Assets and FCStone bring together complementary strengths and a customer-centric focus to create a unique financial services company. FCStone’s exchange and OTC platforms combined with our geographic diversity and strong and liquid capital base create immediate growth opportunities for the merged company, while the expansion of both companies’ customer bases will drive value creation over time.
Pete Anderson, FCStone’s President and CEO, said: We will continue doing what we do best as part of the new International Assets: provide our unique commodity risk management expertise to customers across the agriculture, energy, food service and other verticals we serve. At the same time, we will leverage our partner’s global presence and liquidity to accelerate our growth plans, especially in targeted international markets, while strengthening and enhancing our capabilities and product offerings.”
Banc of America Merrill Lynch Securities and Houlihan Lokey served as financial advisors and Shutts & Bowen served as legal advisor to International Assets Holding Corp. BMO Capital Markets served as exclusive financial advisor to FCStone Group, Stinson Morrison Hecker served as the legal advisor for FCStone Group. The transaction has been approved by the boards of directors of both companies. However, it is subject to approval of their respective shareholders and expected to close the transaction in the fourth quarter of 2009.
International Assets is a financial service provider to the precious metals, foreign currency and international equities trading markets, and with international debt underwriting and asset management teams. FCStone provides risk management consulting and transaction execution services to commercial customers throughout the commodities value chain.
