Rodman Buys Energy I-Bank COSCO
A Rodman Energy Group will be created to expand COSCO’s existing investment advisory and finance practice for companies and funds active in the energy sector.
May 12, 2008
Rodman & Renshaw acquired private investment bank COSCO Capital Management, which focuses on oil and gas sectors in the US and Canada, for $10.1 million.
Rodman will pay cash and stock consideration with $8.1 million payable at closing, and the other $2 million over the next two years. Rodman will pay up to $4 million over the next 21 month period following closing in respect of certain revenue earned, but not yet received, from contracts Rodman is acquiring.
A Rodman Energy Group will be created to expand COSCO’s existing investment advisory and finance practice for companies and funds active in the energy sector once the transaction closes. The deal is expected to close during the second fiscal quarter. Cameron Smith, COSCO founder and senior managing director, will be in charge of the group, which will also nclude COSCO principals.
The acquisition combines Rodman’s leadership in PIPEs and other forms of public financing with COSCO’s expertise in energy investing, finance and advisory. COSCO’s headquarters New York office will fold into Rodman’s, while COSCO’s Houston, Texas and Calgary, Canada office will operate as Rodman branches.
“This acquisition in energy finance, much like last month’s acquisition of Miller Mathis in steel and resources, continues the execution of our strategy to strengthen and broaden our franchise,” said Michael Lacovara, chief executive officer of Rodman. “We are expanding geographically to be closer to our clients and we are adding expertise in select verticals whose growth prospects and capital intensity play to our unique public and private financing capabilities,” he said.
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