GFI buys Starsupply

Interdealer broker GFI Group has agreed to acquire Starsupply Petroleum, a leading broker of oil products and related derivative and option contracts.

Headquartered in New Jersey, Starsupply had revenues of over $23 million in 2004. GFI is acquiring all Starsupply's North American brokerage operations for just over $15 million in cash. The transaction is scheduled to close before the end of September.

Starsupply has 30 brokerage personnel and operates nine energy-related desks, including petroleum feedstocks, petroleum products, crude oil, petrochemicals, product derivatives, crude derivatives, crude and product options, fuel oil and gas liquids. Energy Risk awarded Starsupply "Oil Products House of the Year" in its 2005 awards.

Donald Fewer, senior managing director for GFI in North America, added: "Starsupply's brokerage of leading oil products is highly complementary to GFI's existing services in numerous commodities, energy and shipping markets. We view this acquisition as very timely in light of the increased global activity in the world oil markets, which is expected to continue for the foreseeable future."

Robert Ryneveld, founder and chief executive of Starsupply, said: "I am extremely proud of the business and the reputation that Starsupply has built in our industry during the past 20 years. It has been a team effort involving many dedicated and talented people. I believe that the addition of the Starsupply team to the GFI organisation will serve to strengthen and expand GFI's already formidable presence in global energy markets."

Ryneveld will continue to serve in the business after the closing.