New York – Global alternative asset manager The Carlyle Group (NASDAQ: CG), together with affiliates of Louis M. Bacon, the founder, Chairman, Chief Executive Officer and principal investment manager of Moore Capital Management, LP, have agreed to acquire a majority interest in the Traxys Group, a physical metals and minerals commodity merchant, logistics and trading firm. As part of the transaction, Traxys management will increase its investment stake in the company.
The transaction is subject to customary closing conditions including required regulatory approvals and is expected to close in the third quarter of 2014. Carlyle, Mr. Bacon and Traxys management are acquiring their stake from Pegasus Capital Advisors, Kelso & Company and Resource Capital Funds.
Traxys is a provider of marketing, distribution and supply chain management services to the metals and natural resources sectors. The company also provides value-added services to commodity producers and consumers including logistics, offtake, hedging, financing and distribution. In addition, Traxys pursues opportunistic, direct investments in infrastructure assets and commodity producers that complement its core business activities.
Alan Docter, Chairman of Traxys, stated, “This is an excellent time for us to move Traxys forward with Carlyle and Mr. Bacon. Based on my decades of experience in the industry, I view this as a great opportunity and a perfect time to strengthen our capabilities and continue to grow and invest in Traxys for the future. We are thankful to Pegasus Capital Advisors, Kelso & Company and Resource Capital Funds who have been great partners with us.”
Mark Kristoff, Chief Executive Officer of Traxys, said, “Traxys is a healthy and profitable business and a leader in the global metals and mining raw materials markets. We have a strong management team and highly dedicated employees with extensive expertise, and we are grateful to them for their contributions to Traxys’ success with our existing partners. We are excited about the future of the raw materials markets and believe we are at an optimal stage to build for the future with two very well-respected and experienced investors with truly global reach.”
David Stonehill, Carlyle Managing Director, said, “We are impressed by the diverse, global capabilities of Traxys and the growth potential of the platform. We have known Alan, Mark and the Traxys team for several years and look forward to supporting the team in its next phase of growth.”
Equity capital for Carlyle’s investment in Traxys will come from Carlyle’s U.S. Equity Opportunity Fund L.P.
Morgan Stanley acted as financial advisor to Traxys in the transaction.