National law firm Shoosmiths has advised Consilia Investments Limited on their co-investment with members of the target's management, into a newco and the company's subsequent acquisition of Allied Textiles Limited from Chamonix Private Equity.
Allied Textiles is a group of four leading textile manufacturing companies, situated in Rawtenstall and Nelson in Lancashire, Barnsley in South Yorkshire and Ashbourne in Derbyshire, which manufacture high performance synthetic fabrics and yarns for specialist uses, such as hot air balloons, parachutes and air-bags for vehicles. The business also has an operation in Quebec, Canada.
This acquisition - which took seven months to complete - was highly technical, with complex consideration mechanisms and escrow arrangements, four defined benefit pension schemes, environmental law issues, associated land transfers and other specialist property law advice. Advice was also required on regulatory matters, multiple banking matters, funding and security arrangements and new equity and investment agreements in the new company.
The Shoosmiths team worked closely with the advisors for all parties, in a collaborative process bringing together all stakeholders involved to produce a successful conclusion for all parties.
Corporate partner at Shoosmiths, Karen Procter, led the transaction and was assisted by Benjamin Dredge (solicitor) and Helen Porter (trainee solicitor), with corporate partner Kieran Toal advising on the new equity structure. Banking advice was provided by Liz Sweeney (partner) and Holly Cheng (solicitor). The large multi-disciplined due diligence team working across multiple Shoosmiths locations, included Paul Carney (pensions, partner), Neil Bradley (real estate, associate) and Sophie Wilkinson (environmental, associate).
Tax structuring advice and financial due diligence was provided to Consilia by Grant Thornton UK LLP in Manchester.
Peter Smith, Chairman of Consilia Investments Limited, said: 'Karen Procter and the team at Shoosmiths have surpassed expectations on what has been a lengthy and complex deal, demonstrating patience and perseverance, as well as the technical expertise necessary for such complicated transactions. The Consilia investors are grateful for the support shown by the whole Shoosmiths team and we look forward to working with them on our next deal.'
Shoosmiths corporate partner, Karen Procter, said: 'This is an important transaction, which will see Consilia work closely with the management team to add value and further develop the business of Allied Textiles. This deal further serves to bolster our growing reputation for becoming the 'go-to' firm in Manchester, for getting complex deals over the line. We have very much enjoyed working with Consilia Investments and look forward to working with them again in the future.'
Shoosmiths works with businesses from start-up and first round finance through to mergers and acquisitions, MBO and MBI transactions and development funding and on exits, by way of sale, listing or private equity investment.
The firm has recently been ranked second nationally by deal volume in Experian's 2014 UK Deal Review and Advisor League Table, evidencing the firm's growing market share.
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