KANSAS CITY, Mo.--(BUSINESS WIRE)--FCStone Group, Inc. (NASDAQ: FCSX), a commodity risk-management firm, today announced that it has acquired Elders Risk Management Pty Ltd, an Australian-based company that specializes in risk management for the producers and users of agricultural commodities, including grains, livestock, cotton and wool.
Elders Risk Management Pty Ltd had been a part of Elders Limited, an agribusiness services organization headquartered in Adelaide, Australia that, in turn, is a subsidiary of Futuris Corporation Ltd (Australian Stock Exchange: FCL), Australia’s largest agribusiness holding company.
Elders Risk Management Pty Ltd. has changed its corporate name to FCStone Australia Pty Ltd, and will join FCStone’s other offices and divisions throughout the world, including its offices in China, Brazil, Ireland, and Canada, in providing its clients with access to global risk-management capabilities.
“We see this acquisition as a natural geographic extension of our core domestic and overseas risk-management business,” commented Pete Anderson, FCStone’s Chief Executive Officer.
Anderson added, “As the agricultural industry becomes increasingly internationalized and interconnected, we intend to stay ahead of the curve by increasing our capabilities in the world’s major agricultural regions. Australia is a key part of that strategy because it is one of the world’s most important producers of a wide range of agricultural commodities.
“As FCStone continues to expand its presence across the globe,” Anderson said, “FCStone Australia will put us in position to provide more extensive risk-management services to agribusiness organizations throughout Asia and Oceania, as well as provide new opportunities to our existing clients around the world.”
Elders’ decision to sell the risk management operations to FCStone is a result of a shift back to the core services of Australia’s leading agribusiness service provider. “Elders is refocusing on what is does best, that is the provision of agricultural inputs, technical services and marketing options for our core agricultural markets,” said John Molenaar, Elders Rural Services’ Head of Australia.
Mr. Molenaar added, “I believe that Elders clients will receive greater access to commodities services and world class insights thanks to the partnership with FCStone. We think organizations should focus on what they are good at. Elders clients, I believe, will benefit from this partnership while we continue to add value in our areas of expertise.”