A global contingent of lawyers spanning more than 30 jurisdictions has advised food companies Associated British Foods (ABF) and Burns Philp in what is one of the largest ever transactions in the bakery ingredients industry.
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Baker's half dozen: the deal is one of the largest ever in the industry |
A number of worldwide firms shared the work, due to the global nature of the businesses. Cravath Swaine & Moore and Herbert Smith advised international food group ABF on its acquisition of Burns Philp's yeast and bakery ingredients group and its Tone Bros herbs and spices business. Cravath advised on US law, while Herbert Smith advised on English law.
Herbert Smith used its international alliances, referring work to German and Dutch partners Gleiss Lutz and Stibbe, and Spanish firm Cuatrecasas. Stephen Hancock of Herbert Smith led the team, assisted by Carl Powlson and Elisa Menardo.
On the US side, the partners at Cravath acting for ABF were Faiza Saeed, Ronald Rolfe and Lewis Steinberg. Allens Arthur Robinson acted as Australian legal adviser to ABF, led by partners Ewen Crouch and Andrew Finch.
Burns Philp used Australian firm Freehills, which advised the company on its takeover of Goodman Fielder in March last year. The company turned to Mayer Brown Rowe & Maw for UK and French law advice and to Dewey Ballantine for US law advice.
"The biggest challenge was coordinating the execution of the transaction with local businesses, involving the sale of assets in approximately 30 countries," said Jack Bodner of Dewey Ballantine.
The acquisition will serve to strengthen ABF's position as one of Europe's largest food companies and to further develop its presence in growing markets. The transaction is also indicative of ABF's strategy to build on its existing strengths.
Burns Philp will allocate 25% of the proceeds to debt reduction, leaving the rest in cash reserves.
The acquisition is still subject to relevant regulatory approvals, although all parties concerned are confident that the deal will be cleared. The sale is expected to be completed by September 30 2004.