Reading: Shoosmiths handles £100m worth of deals
Shoosmiths’ Reading corporate team completed deals worth in excess of £100 million in a staggering run of private equity transactions in the closing days of 2006.
The national law firm’s southern team finished the year on a high note, completing the four private equity backed deals in almost as many days involving Barclays Private Equity, August Equity, ISIS and NVM.
The largest single transaction was the £40.9m delisting of Planit Holdings plc – a leading developer of software products for the manufacturing market – from AIM.
Shoosmiths’ corporate partners Sean Wright and Emma Gibson from its Thames Valley office advised the management team of the Kent-based company, which has returned to the private sector having been publicly traded on the London exchanges since 1998. The deal was backed by August Equity, HSBC Bank plc and members of Planit Holdings UK and US senior management team.
As well as the Planit take private, Emma Gibson and Sean Wright advised the management team behind the £28m management buyout (MBO) of Isle of Wight-based Scala Collections, which was backed by Barclays Private Equity.
Established 11 years ago, the company offers authentic Italian clothes, shoes and accessories online and through mail order. Scala has a turnover forecast of £19.5m for the year to January 2007 and boasts a customer base of more than half a million generating an operating profit of £3.3m.
“There has been an enormous increase in the level of private equity backed transactions throughout 2006, especially in the mid-market sector,” commented Wright. “We have been appointed on a host of these deals working for management teams, banks, venture capitalists and other investors.”
Emma Gibson added: “The levels of activity reflect the current market, private equity houses are hungry to invest in dynamic businesses where there is potential for real growth.”
The final deals completed by Shoosmiths’ team before the close of the year involved lead partner Sean Wright, banking associate Kirsty Clarke and corporate associate Lynn Knight. They advised RBS Corporate and Structured Finance on its multi-million pound backing, with NVM, of the MBO of Product Support and the same team also advised on the ISIS Equity Partners led £35m buyout of Allied Irish Trust Company.
These latest deals follow on from headline transactions such as the team acting for Lloyds Development Capital on its investment in the buyout of Big Hand and the Bowmark Capital backed MBO of Design Objectives.
Shoosmiths claimed the deals confirmed the firm as the leading legal team in the south advising on private equity transactions for management or private equity houses – the team was described by a major independent survey of the legal profession as an “excellent name that constantly pops up on noteworthy deals”. It also ranked Wright as a “leading individual” in the corporate finance marketplace.
