Hunters senior partner Henry Hood (left) with Peachey senior partner David Wilson
City giant Herbert Smith Freehills yesterday unveiled a merger with a US firm a quarter its size that will propel the combined practice into the top 20 globally by headcount and revenue.$435m.
Kramer Levin is a New York firm with 400 lawyers and a turnover in the last financial year of $435m (£338m). Herbert Smith’s announced revenues up 10% to £1.3bn in the year to 30 April, with profits up 14.5% to £445m. Profit per equity partner rose 12% to £1.3m.
The combined firm will have over 2,700 lawyers including c.640 partners across 25 offices. There will be a single global profit pool from day one, a statement said, and having around 120 partners in the US “surpasses international peers”.
The firm will operate globally as Herbert Smith Freehills Kramer, except in the US, where it will be HSF Kramer.
Rebecca Maslen-Stannage, chair and senior partner of Herbert Smith Freehills, said: “This is transformational. We have long been committed to expanding our offering in the US and Kramer Levin is the perfect fit. The combination delivers immediate growth for both firms from day one.”
Howard T Spilko, co-managing partner of Kramer Levin, added: “Joining forces with Herbert Smith Freehills is a one-of-a-kind opportunity that helps us achieve our vision and potential for strategic growth.
“The combination provides us with a significant competitive advantage by bolstering our destination practices with a deeper bench, broader geographic reach and sector expertise, while providing the opportunity to collaborate to achieve great outcomes for clients internationally.”
Insurance and commercial firm HF has added construction law to its practice with one of several deals to have been announced in recent weeks.
Domestically, HF, a national firm based in Manchester, has acquired Quigg Golden, specialists in construction and procurement law with offices in Belfast, Dublin, London and Maidstone.
Founders Edward Quigg and James Golden, along with 21 colleagues, have moved over.
Mr Golden said: “At QG we set out to make construction more efficient and more just. We have an innovative culture and find ways to better serve our clients and create positive change.
“In joining HF we will be able to leverage HF’s extensive investment in innovation and larger footprint.”
HF was advised by M&A broker Millbourn Ross.
Lincoln’s Inn law firm Hunters Law has acquired corporate and commercial firm Peachey & Co. Five partners and three associates have moved over, taking Hunters to 28 partners and 28 associates in total. Both firms date their origins back to the 18th century.
Hunters chief finance officer Arif Kamal commented: “Our strategy is about inspiring all who work at Hunters, delivering value for our clients and setting a vision for the future of our business. The merger will greatly strengthen Hunters’ position in its chosen markets.”
David Wilson, senior partner at Peachey & Co, is now head of Hunters’ commercial team.
Fund manager River Capital has announced a six-figure loan to Liverpool firm Black Norman, which specialises in property and private client work, to support a management buyout and succession plan.
The loan will enable two of the firm’s current owners and directors, Richard Entwistle and Shoab Panwar, to acquire the shares of founding partner Howard Norman, who at 74 is transitioning to a consultancy role after 48 years in practice.
The loan will both facilitate the share buyout and provide some working capital to support future growth. Black Norman currently employs 30 staff.
Mr Entwistle said: “This funding allows us to implement our succession plan while positioning the business for future expansion that includes incorporating new talent to lead the business in the future.”
The money came from the NW business growth loan fund, managed by River Capital, which provides debt funding of between £100,000 and £500,000 to SMEs across the North-West.
Fee-share law firm Legal Studio has acquired fellow Leeds-based GC Business Lawyers, which was run by corporate solicitor Gary Caplan. Legal Studio now has 34 consultant solicitors.
Ian McCann, chief executive of Legal Studio, said the firm has ambitious plans for further growth through more acquisitions.
“This acquisition strengthens our corporate offering at a time when demand for high-quality corporate solicitors is growing.”
Suffolk firm Gotelee, which earlier this year joined Mezzle Group, which owns fee-share practice Mezzle, has announced changes to its operation as a result.
Shifting to “a more remote and flexible working model to foster greater work-life balance for our staff”, the 14-partner, 100-person practice is scaling back its office footprint.
Having already downsized its main office in Ipswich, Gotelee’s Hadleigh office “is being reviewed”. It is also to start changing to the Mezzle brand.
The reduced office space meant reduced storage capacity and so the care and conduct of all wills made before 1 September have been transferred to Right Legal Group, a wills and probate specialist that earlier this year announced major expansion plans after taking private equity investment.
WorkNest, one of the largest employment law, HR and health & safety businesses in the country – made up of both regulated law firms and unregulated businesses, and bought by a private equity firm earlier this year – has acquired Wirehouse Employer Services, based in Warrington. Its services closely match WorkNest’s HR and health & safety offerings.
We reported last week on a professional services business focused on finance and accountancy entering the legal market with the £6.1m acquisition of a fee-share law firm, and last month on other M&A deals announced with the October insurance renewal deadline in mind.
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