Commodities trader Engelhart Commodities Trading Partners, has completed the acquisition of Riverstone-backed Trailstone, a global energy and technology company. Financial terms of the transaction weren’t disclosed.
Under the deal, announced in June, Engelhart, which trades power, gas and oil but is also active in agricultural and soft commodities, freight, will add Trailstone’s renewables-focused global energy and technology trading company. Trailstone is also active in trading power, natural gas and environmental products across North America, Europe and Asia.
Engelhart is owned by the same partner group that controls BTG Pactual, the largest investment bank in Latin America.
The acquisition “will combine the resources and expertise of two successful businesses and enable them to leverage their joint capabilities to enhance trading performance, grow their customer business and play a leading role in decarbonizing the world’s energy matrix,” Engelhart said in an Aug. 26 press release.
Trailstone has also built a natural gas client business in North America and Mexico. The business provides storage, transportation and supply capabilities to serve its customers’ growing optimization and risk management requirements, Engelhart said.
The acquisition is a “pivotal part” of Engelhart’s strategic plan to strengthen its global power and gas trading platform and technological capabilities while generating value through active participation in the clean energy transition, the company said.
Completing the acquisition starts a new chapter for the combined businesses,” Engelhart CEO Huw Jenkins said. “By integrating our advanced quantitative modelling and weather forecasting capabilities with Trailstone’s strong presence in the renewable power and gas markets, we create a powerful force for growing our trading activities across the commodities complex. The shift from hydrocarbons to renewable energy is inevitable and transformative, and this acquisition means we will be at the vanguard of that transition.”
Latham & Watkins acted as legal advisers to Riverstone and Trailstone.
Skadden, Arps, Slate, Meagher & Flom acted as legal adviser to Engelhart.