Baker McKenzie advised Sika on its binding offer to acquire French mortar manufacturer Parex from financial investor CVC Capital Partners for CHF 2.5 billion (USD 2.55 billion). Parex produces mortars systems, tile adhesives and waterproofing systems with a turnover of CHF 1.2 billion in 2018.
With the transaction Sika aims to generate profitable growth by expanding its technological portfolio and developing cross-selling potential. The transaction is subject to customary regulatory approvals and consultation with the French works council and is expected to close in the second or third quarter of 2019.
Baker McKenzie provided Sika with comprehensive legal advice on all aspects of the transaction.
"Parex's broad global structure on the one hand and the tight timetable of the transaction on the other hand created particular challenges for an efficient legal due diligence. With our global team and stringent project management, we were able to provide Sika with efficient support in all jurisdictions and legal areas involved", comments Baker McKenzie Corporate/M&A partner Dr. Florian Kästle, who co-led the Baker McKenzie team on the transaction.
Stefan Moesli, Group General Counsel of Sika, comments on the cooperation with Baker McKenzie: "For the last 20 years I have enjoyed the true partnership with Baker McKenzie. Again with this transaction I have been impressed with the high quality of their work and their outstanding commitment. We look forward to working again with Baker McKenzie on our next project."
PAREX is a fast-growing international construction chemical company providing specialty solutions to the building and construction industry. With 4,400 employees in 23 countries, 74 manufacturing facilities, 2 group R&D centers in France and China, the Group achieved CHF 1.2 billion in sales in 2017.
CVC Capital Partners is a leading private equity and investment advisory firm. Founded in 1981, CVC's network today consists of 24 offices and over 490 employees throughout Europe, Asia and the U.S.
Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protection in the building sector and automotive industry. Sika has subsidiaries in 101 countries around the world and manufactures in over 200 factories. Its more than 19,500 employees generated annual sales of CHF 7.09 billion in 2018.
Baker McKenzie's Corporate/M&A team regularly advises on domestic and international transactions and restructurings. Most recently, Baker McKenzie advised Georg Fischer AG on the sale of two iron casting plants in Germany, Eastman on the acquisition of a chemical production plant from Sasol, Rexnord on the sale of VAG Group to Aurelius, BITZER on a joint venture with the Wurm Group, MainFirst Holding on the sale of its equity brokerage business, HGZN on the acquisition of NIMAK Group, DBAG Fund VII on its investment in Kraft & Bauer Holding, Thor Industries on the acquisition of Erwin Hymer Group, Körber AG on the sale of the United Grinding Group, Global Ports Holding Plc on its strategic investment in Dreamlines, financial investors First State Investments and Hermes Investment Management on the acquisition of the shipping company Scandlines, Mundipharma on the sale of its Limburg production and LKQ Corporation on the acquisition of the Stahlgruber Group.
Legal advisors to Sika:
Lead: Corporate/M&A: Dr. Florian Kästle (partner, Frankfurt), Alyssa Auberger (partner, Paris), Alan Zoccolillo (partner, New York)
Team: Corporate/M&A: Guillaume Nataf (partner, Paris), Solenne Gilles (associate, Paris), Michelle Heisner, Jason Kramer (associates, New York)
Employment: Denise Broussal (partner, Paris)
Competition: Dr. Nicolas Kredel (partner, Düsseldorf), Dr. Anja Palatzke, Clara Dust, Markus Brösamle (associates, Düsseldorf)
Umweltrecht: John Watson (partner, Chicago), Jessica Wicha (associate, Chicago)