The US energy trading firm has acquired the majority of ED&F Man’s outstanding debt and expects to complete a deal for the London-based commodities trader’s three business units – Volcafe, ED&F Man Liquid Products and ED&F Man Sugar – in 2025
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Volcafe sources approximately 12% of the global coffee export market | Photo credit: Volcafe
US energy trading firm Hartree Partners has signed an agreement to acquire the three business units of ED&F Man Commodities – Volcafe, ED&F Man Liquid Products and ED&F Man Sugar.
Established in 1997 as Hetco, Hartree is now owned by California-based investment management firm Oaktree Capital Management and has interests in oil, gas, energy storage, metals and agriculture.
Having already acquired most of the ED&F Man’s outstanding debt, the deal for its coffee, sugar and livestock feed trading units is expected to close in 2025, subject to regulatory approval.
Amid soaring commodity prices, particularly for coffee and sugar, ED&F Man restructured $1.5bn of debt and raised $300m in additional liquidity in March 2022 – a move it said would help it navigate ‘the current high commodity price environment’.
In a new press release, Hartree Managing Director Guy Merison said the deal represented the firm’s first step into the soft commodities market.
“We look forward to working with the ED&F Man Commodities team to leverage Hartree’s insights, capabilities and strong relationships, paired with ED&F Man Commodities’ globally recognised heritage in trading, for the benefit of all our clients and other stakeholders,” he said.
ED&F Man said the transaction would see its business units and 2,800 employees globally gain an ‘experienced, long-term partner with shared values’.
“Hartree is a global firm with a strong balance sheet and a highly skilled management team that has deep understanding of the commodities space and an appetite for growth. We look forward to partnering with Hartree to achieve ED&F Man Commodities’ full potential,” said Chris Mahoney, Chair, ED&F Man Holdings Ltd.
Ownership of Swiss coffee merchant Volcafe has changed several times over its 170-year history. The Zürich-based company was founded in 1851 as Volkart and changed its name to Volcafe in 1989 after Swiss industrial firm ERB Group took an 80% stake in the business.
After ERB Group entered bankruptcy in 2003, ED&F Man acquired Volcafe and integrated its existing coffee operations in the UK, Brazil, Kenya, Singapore and Vietnam into the newly formed coffee division.
Today, Volcafe is one of the world’s largest coffee merchants, specialising in green coffee procurement, processing and distribution. The coffee trader sources approximately 12% of the global coffee export market.
As one of the largest sugar traders globally, ED&F Man Sugar moves over six million tons of sugar annually and is one of the largest receivers of white sugar on the London Commodity Exchange. ED&F Man Liquid Products sources, stores and sells liquid livestock feed.