London's Atlantic Brokers Ltd acquired in £4.8m deal

Atlantic Brokers Holdings Ltd, a London-based broker of physical and financial coal products, has been acquired by Braemar Shipping Services plc for £4.8m.

Braemar Shipping Services plc is an international provider of broking, financial advisory, consultancy, technical and logistics services to the shipping, marine, energy, offshore and insurance industries.

Atlantic is an introducing broker for ICE coal and CME Clearport coal futures and options; it is regulated by the Financial Conduct Authority (FCA) and is also a member of the National Futures Association of the United States of America.

As Atlantic is regulated by the FCA, the acquisition will enable Braemar to move into the growth area of commodity derivatives broking.

Atlantic will form a new regulated desk within Braemar ACM Shipbroking, enabling the division to offer both paper and physical broking services for the first time. Collaboration between Atlantic and Braemar’s Shipbroking division will give Braemar the opportunity to offer additional services to existing clients.

The acquisition also offers additional growth opportunities for Braemar to expand into new product areas of the brokered commodity futures market, including iron ore derivatives, coking coal and other bulk products.

James Kidwell, CEO of Braemar, said: “The acquisition of Atlantic marks another step in our stated strategy of growing a diverse maritime business.

“The Board is continually looking for high quality acquisitions to support our business development strategy and I am delighted to welcome the Atlantic team to Braemar. We look forward to integrating the teams and growing our combined businesses.”

James Gundy, CEO of Braemar ACM Shipbroking, added: “This is an exciting move for Braemar which promises an entry into the developing brokered commodity futures market, an area in which our clients have a regular requirement.

“Acquiring Atlantic, an established business, 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 and allow us to offer a wider range of services to our growing client base.”

Tristram Simmonds, managing director of Atlantic, also commented: “At Atlantic, we have long regarded Braemar, particularly its Shipbroking Division, as a business with ambitions and a culture close to our own.

“We believe that Braemar offers the right opportunity to expand our product offering and continue to grow our business, and that our businesses fit together well. We are very pleased to become part of Braemar and look forward to the future with great optimism.”