LOUISVILLE, Ky., Oct. 4 /PRNewswire/ -- An ICAP company, Garban- Intercapital North America Inc., has completed the acquisition of the business of APB Energy, Inc for an initial cash payment of US$15.5 million. Further payments, which are contingent on the future earnings of the business, will be made over four years. The payment in 2003 will be paid in cash. The payments in 2004, 2005 and 2006 will be made in cash or up to 65% in ICAP plc shares, at ICAP's option. In the event that the business continues to perform well, it is anticipated that such additional payments will amount to circa US$30 million. (Irrespective of the performance of the business, the total amount payable for this acquisition cannot exceed US$100 million.) APB Energy is a leading energy broker in the US and European markets providing execution services and coverage of electricity, natural gas, coal and other energy related products. The business has net assets of US$4.4 million. It had revenue of $32.5 million and a normalized pre tax profit of $8.7 million in the year to December 2001, which included only two months of activity for the European business acquired in November of that same year. Through its online platform, truequote.com, APB offers real-time price discovery and execution to complement its voice broking services. All 165 of APB Energy's directors and staff will be remaining with the company. Michael Spencer, Chief Executive of ICAP plc said "APB Energy has a strong market position in electricity, natural gas, coal and other energy related products. We believe that energy broking has significant long term potential and that APB Energy can provide an outstanding entry for ICAP into the U.S., Nordic and other regional European markets. Assuming current market activity levels continue, we expect this acquisition to enhance headline EPS in 2003/4." "It has long-been APB's mission to build the largest energy brokerage company in the world. In ICAP, we found a partner with similar core values and a global commitment to excellence. I am confident the APB-ICAP combination will accelerate positive results for all of our stakeholders," said Dennis W. Crum - Founder and CEO of APB. Enquiries: ICAP plc Michael Spencer Group Chief Executive Officer (44) 20 7638 7592 Mike Sheard Director of Corporate Affairs (44) 20 7574 7771 Matthew Smallwood College Hill (44) 20 7457 2020 APB Energy, Inc Dennis W. Crum Chairman and Chief Executive Officer (1) 502 212 4900 Todd A. Creek Chief Financial Officer (1) 502 212 4900 Notes for Editors: ICAP is the world's largest inter-dealer broker. The Group is active in the wholesale market for OTC derivatives, fixed income securities, money markets, futures, foreign exchange and energy and equity derivatives with daily turnover in excess of $300 billion. ICAP has 2200 staff worldwide. Its wholly owned subsidiary, Intercapital Commodity Swaps Ltd., is a leading specialist commodity derivatives business covering oils and oils products, bullion and precious metals, electricity, coal and weather derivatives. It has a total of 50 staff in Sydney, Singapore and London. ICAP plc (IAP) is listed on the London Stock Exchange and is a FTSE 250 company. For more information go to www.icap.com APB Energy, Inc and its affiliates APB Financial LLC and APB Energy Europe AS provide a full-service OTC commodity brokerage specializing in the global energy industry. APB is headquartered in Louisville, Kentucky with offices in Houston, Chapel Hill, Bergen and Amsterdam. The company was founded in 1993. For more information go to www.apbenergy.com MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X67170544
SOURCE APB Energy, Inc.