NEW YORK — Financial and commodities services firm StoneX Group Inc. plans to acquire R.J. O’Brien & Associates, the nation’s oldest futures brokerage and clearing house, in a $900 million deal.
Under the agreement, announced April 14, New York-based StoneX is slated to pay R.J. O’Brien (RJO) $625 million in cash and about 3.5 million shares of common stock. StoneX said it has obtained bridge financing for the cash portion and plans to issue approximately $625 million of long-term debt before the transaction closes. In addition, StoneX agreed to assume up to $143 million of RJO’s debt.
Publicly held StoneX said the acquisition will boost its position in the futures commission merchant (FCM) arena as well as its standing in the global financial market structure, offering institutional-grade execution, clearing, custody and prime brokerage across all asset classes.
“This is a transformational transaction for StoneX, establishing us as a leading global derivatives clearing firm and reinforcing our position as an integral part of the global market structure across asset classes,” said Sean O’Connor, executive vice chairman of StoneX.
Founded in 1914, Chicago-based RJO, through its FCM and global affiliates, supports more than 75,000 client accounts and serves the industry’s largest global network of introducing brokers (IBs), plus commercial and institutional clients and individual investors, according to StoneX. The acquisition stands to expand StoneX’s client float by almost $6 billion, add nearly 300 IBs to its network and increase its cleared listed derivatives volume by an estimated 190 million contracts annually, the company said.
“Combining R.J. O’Brien’s extensive client network and proven clearing capabilities with StoneX’s deep liquidity, innovative OTC hedging solutions and leading risk management infrastructure, we are well-positioned to continue to deliver exceptional services, broader market access and industry-leading trading solutions to our combined client base,” O’Connor said. “We are very pleased that Gerry Corcoran, who has been the CEO and driving force behind RJO, will continue on with StoneX in a senior leadership role.”
RJO generated $766 million in revenue and about $170 million in EBITDA during calendar year 2024, StoneX said. The company said RJO’s clients will benefit from StoneX’s broad range of markets, products and services, including an expansive over-the-counter hedging platform, physical commodities hedging, financing and logistic services, along with access to deep liquidity across fixed-income products.
“We’re extraordinarily excited about this partnership between two great companies that each bring over a century of history in the futures industry and complementary capabilities, products, services and cultures,” said Gerry Corcoran, chairman and chief executive officer of privately held RJO. “We both prioritize a profound commitment to our clients and a focus on prudent risk management. RJO’s clients will continue to enjoy the same enduring relationships with the brokers they know so well and the high level of service they know they can expect from us.
“In addition to all the products we offer today, our clients and brokers will have a plethora of new products and services across asset classes available at their fingertips, bringing meaningful new trading and hedging opportunities. At the same time, our organization will benefit from new efficiencies, premier technologies and greater growth potential.”
The transaction is expected to close in the 2025 third quarter, pending regulatory approvals and customary closing conditions.
StoneX connects companies, organizations, traders and investors to the global market ecosystem via digital platforms, end-to-end clearing and execution services and expertise. Its network serves more than 54,000 commercial, institutional and global payments clients as well as more than 400,000 self-directed/retail accounts from more than 80 offices across six continents.
Agricultural commodities markets in which StoneX participates include cocoa, coffee, cotton, dairy, grains and oilseeds, meat and livestock, and sugar, while RJO participates in such markets as wheat, corn, oats, soybeans, soybean meal, soybean oil, lean hogs and live cattle.
“This transaction is the right step to take for all of our stakeholders to ensure we carry on the values that have made the firm successful while putting us in the strongest position to compete and meet the challenges of the evolving financial landscape,” said RJO board member, Bob O’Brien Jr., speaking on behalf of the O’Brien family and RJO majority shareholders. “StoneX was founded just 10 years after my grandfather, John V. McCarthy, started our firm in 1914. Like RJO, it was one of the earliest clearing members of the Chicago Mercantile Exchange. So many of our family members have been privileged to lead the company and provide guidance and counsel. We feel so close to our clients, brokers and employees; they’re extended family to us. This merger is the natural next step in the history of the company, and the O’Brien family is enthusiastic about playing a new role as major shareholders in another great company that will build on that legacy.”
