Legal Business

‘A rollercoaster ride’: Addleshaw Goddard reports mixed financial performance after turbulent year

Posted on |
Financial results 2016/17 Addleshaw Goddard

UK firm Addleshaw Goddard has reported £198m in revenue for 2016/17, a 2% fall from the figure announced last year.

However, while the figure represents a drop on 2015/16’s reported revenues of £202m, a spokesperson for the firm said this sum included an uplift for income from conditional fee arrangements. Actual revenue last year was £194m, meaning underlying growth in real terms of 2% to this year’s top line.

The 2016/17 figure excludes income from HBJ Gateley, the firm with which Addleshaw merged on 1 June.

The performance came at the end of a year which managing partner John Joyce described to Legal Business as ‘a rollercoaster ride’.

‘Nine months before the end of the year activity took a massive hit following the referendum,’ he added, referring to the results of the UK vote to quit the European Union on 23 June 2016.

‘The year started uncertainly, a shock result, massive drop in activity that took a good 3 months to recover. It’s been a very turbulent year. Fortunately by December activity has picked up massively and remained strong.’

Over 70% of the firm’s income came from financial services, real estate, retail and consumer, energy and utilities, industrials, transport, digital, health and life sciences.

The firm advised Lloyds Banking Group on the £1.9bn buyout of credit card provider MBNA from Bank of America, National Grid on the sale of its UK Gas Distribution Business with an enterprise value of approximately £13.8bn.

It also acted on the £2.8bn refinancing of Clarion Group and the £3.4bn refinance of London & Quadrant Housing Trust on its merger with East Thames housing group – the Social Housing sectors largest ever deals.

The firm also secured appointments at BT, Capita, the Department of Transport’s inaugural Rail panel, Diageo, Crown Commercial Services, Manchester Airport Group and Standard Life Investments Real Estate panel.

The combination with HBJ will strengthen the firm’s operations in financial services and real estate, adding offices in Edinburgh, Glasgow and Aberdeen.

marco.cillario@legalbusiness.co.uk

Legal Business

Addleshaws, Eversheds and Simmons claim places on HSBC UK legal panel

Posted on |
Adviser reviews Addleshaw GoddardEversheds SutherlandSimmons & Simmons

HSBC has appointed around ten firms to its UK legal banking panel. Addleshaw Goddard, Eversheds Sutherland and Simmons & Simmonswere among those which made the cut.

CMS Cameron McKenna, Dentons and Pinsent Masons are also among the roster which was reduced in size.

The UK review follows a global shake-up in December last year, in which existing panel members Allen & Overy, Clifford Chance (CC), Freshfields Bruckhaus Deringer and Linklaters were joined by US newcomer Davis Polk & Wardwell.

The bank previously reviewed its panel in 2012, when it expanded its roster to include a group US firms including Cleary Gottlieb Steen & Hamilton, Latham & Watkins and Mayer Brown.

HSBC’s in-house legal team changed significantly in 2017.The company’s head of legal for worldwide operations and deputy general counsel (GC) Richard Given left to become GC and company secretary at fintech startup 10x Banking.

Internal associate general counsel Stephen Cooke replaced Given, who was in his role for almost six years.

Hugh Pugsley has been GC at HSBC since 2015, after leaving Lloyds Banking Group.

In May, in other banking panel reviews, Standard Chartered unveiled its completed global panel, with Magic Circle firms dominating the line-up. On the panel were Slaughter and May, A&O, Linklaters and CC, alongside Herbert Smith Freehills (HSF), Hogan Lovells, Baker McKenzie and Dentons.

Deutsche Bank also completed its global panel this year, with all of the Magic Circle firms joined by HSF, Ashurst, Simmons & Simmons, Taylor Wessing and Hogan Lovells.

HSBC declined to comment.

tom.baker@legalease.co.uk

Legal Business

Revolving doors: Squire Patton Boggs and Addleshaws hire in Leeds, Taylor Wessing in France, Goodwin in Boston

Posted on |
Strategic recruitment Addleshaw GoddardSquire Patton Boggs

A steady pace of lateral hires continued into the second half of 2017, with Squire Patton Boggs and Addleshaw Goddard both taking on partners in the UK, Taylor Wessing in France and Goodwin Procter in Boston.

Addleshaws has hired experienced private equity partner Pete Wood from Pinsent Masons in Leeds. Wood advises clients in private equity and M&A across retail, financial services, manufacturing and consumer goods.

Addleshaws mergers and acquisitions partner Garry Elliott said Wood’s experience and track record will ‘further enhance our team’.

He described Wood’s hire as ‘testament to our ambition to remain as the number one Corporate team operating in the region’ and which would ‘bring further Private Equity experience and capability to our local and national teams’.

Squire Patton Boggs also announced the appointment of partner Simon Jones to its Birmingham office. Jones is the former Eversheds Sutherland’s Leeds head of technology and global head of automotive, and was previously head of technology and sourcing at DLA Piper, also in Birmingham.

Jones advises on a range of IT and outsourcing projects, with a particular focus on the impact of technology on the automotive and manufacturing sectors.

Squire Patton Boggs’ head of intellectual property & technology practice in Birmingham Stuart James said: ‘[Jones] has a very successful track record in advising on high profile IT and outsourcing projects in both the private and public sector.’

Held ‘in high regard by his clients for his commerciality and technical expertise, Simon will be a great asset; we are excited to welcome him to the firm,’ James said.

A rare loss for Latham & Watkins enhanced Taylor Wessing’s corporate capabilities in France. François Mary joins as a partner in the firm’s Paris office, after over 10 years at Latham. He specialises in corporate law, advising on mergers and acquisitions, private equity transactions, restructuring operations and minority investments.

Taylor Wessing Paris managing partner Gilles Amsallem said Mary’s expertise ‘adds to and reinforces the corporate platform of our firm in Paris.’

Meanwhile, Goodwin enhanced its real estate platform in Boston with partner Marc Lazar from Ropes & Gray, where he was co-head of the real estate investments and transactions group.

Lazar is experienced in real estate finance and investments, representing institutional investors, hedge funds, real estate and other private equity funds as well as lenders and developers, throughout the capital stack and across all asset classes.

‘Marc’s arrival deepens the industry reach of our fund formation, transactional, portfolio and public company teams, said Minta Kay, partner and chair of Goodwin’s global real estate.

His ‘strong technical skills and ability to execute multijurisdictional transactions for high-profile European clients will be extremely valuable to our group,’ said Samantha Lake Coghlan, partner and co-chair of Goodwin’s London office.

Legal Business

It’s over: German firm Luther calls off Addleshaws merger talks

Posted on |
Legal mergers Addleshaw Goddard

Merger talks between Addleshaw Goddard and German outfit Luther have ended after Luther called off the deal, Legal Business understands.

Legal Business reported in January that Addleshaws was in talks to merge with full-service firm Luther, which has ten offices across Germany including Munich, Dusseldorf and Frankfurt. It also has international bases in Brussels, Shanghai, Luxembourg, Yangon, Singapore and London.

According to one source, the talks ended at least a month ago, with Luther making the call.

Despite the talks being called off, another source close to the firm told Legal Business that Addleshaws is still very keen on securing a German tie-up.

Luther’s website states that its worldwide turnover for the financial year 2015/16 was €124m, while the firm’s German revenues amounted to €110.3m.

Had the firms had merged, Addleshaws, which posted revenues of £201.8m for the financial year 2015, would have easily reached its stated goal of becoming a £250m firm by the financial year 2017/18.

On 1 June, Addleshaws finally secured a long-awaited Scottish presence when the firm’s merger with HBJ Gateley went live.

Partners at both firms have attended the first partner conference since the merger, which was held in Edinburgh last Friday.

The Addleshaws-HBJ Gateley tie-up, which will integrate HBJ’s entire Scottish office into Addleshaws, has already resulted in new mandates for the firm. Addleshaws will be appointed as pharmaceutical company Celesio’s preferred law firm on all Scottish real estate matters, according to a statement.

Addleshaws also expects to grow in a number of industry sectors, particularly real estate, financial services and energy.

Four HBJ Gateley partners have also joined the executive team heading Addleshaws’ four operating divisions: David Kirchin in the corporate team, Alan Shanks in finance, Simon Catto in litigation and Miles Ede in real estate.

Last year, merger talks between Addleshaws and Scottish independent Maclay Murray & Spens to create a national practice with combined revenues of around £230m were called off.

Maclays is one of Scotland’s last remaining major independent firms, following Dundas & Wilson’s 2014 merger with CMS, McGrigors’ 2012 tie-up with Pinsent Masons, and Clyde & Co’s takeover of Simpson Marwick last year. Maclays had previously entered talks with Bond Pearce in 2011.

Addleshaw and Luther declined to comment.

kathryn.mccann@legalease.co.uk

Legal Business

Addleshaws, Freshfields and Linklaters line up on Lloyds and Metro Bank £1.9bn and £596.7m acquisitions

Posted on |
Corporate Addleshaw GoddardFreshfields Bruckhaus DeringerLinklaters

Addleshaw Goddard has scored roles advising both Lloyds Banking Group and Metro Bank on two distinct acquisitions worth £1.9bn and £596.7m respectively, Freshfields Bruckhaus Deringer and Linklaters on the other side.

Addleshaws’ M&A partner Nick Pearey and financial regulation partner Rosanna Bryant acted for Lloyds on the £1.9bn buyout of credit card provider MBNA from Bank of America. The deal is the bank’s largest acquisition since the 2008 financial crisis.

Freshfields advised Bank of America on the transaction, with corporate partner Sundeep Kapila leading for the firm.

Addleshaws also acted for Metro Bank on its £596.7m takeover of private equity firm Cerberus European Residential Holdings. Addleshaws fielded M&A partner Hugh Lauritsen, alongside Bryant, on the deal. Linklaters acted for Cerberus on the deal.

Legacy HBJ Gateley partners Alan Shanks and Addi Shamash also acted for Addleshaws, who finalised their merger with HBJ this week.

This week, Addleshaws finally secured a long-awaited Scottish presence when the firm’s merger with HBJ Gateley went live yesterday (1 June).

The tie-up, which will integrate HBJ’s entire Scottish office into Addleshaws, has already resulted in new mandates for the firm. Addleshaws will be appointed as pharmaceutical company Celesio’s preferred law firm on all Scottish real estate matters, as Legal Business reported.

Following last year’s failed merger talks with Scottish Independent Maclay Murray & Spens, Addleshaws and HBJ first confirmed plans to merge back in November.  It is expected that the combined firm will have a turnover of £224m, with £214m in UK revenue and more than 240 partners.

The firm is on both Lloyds Bank and Metro Bank’s panels.

kathryn.mccann@legalease.co.uk

Legal Business

Addleshaws chosen as Celesio’s preferred adviser in Scotland as HBJ merger goes live

Posted on |
Scotland Addleshaw Goddard

Top 20 firm Addleshaw Goddard has finally secured a long-awaited Scottish presence as the firm’s merger with HBJ Gateley goes live today (1 June).

The tie-up, which will integrate HBJ’s entire Scottish office into Addleshaws, has already resulted in new mandates for the firm. Addleshaws will be appointed as pharmaceutical company Celesio’s preferred law firm on all Scottish real estate matters, according to a statement.

Addleshaws also expects to grow in a number of industry sectors, particularly real estate, financial services and energy.

Following last year’s failed merger talks with Scottish Independent Maclay Murray & Spens, Addleshaws and HBJ first confirmed plans to merge back in November.  It is expected that the combined firm will have a turnover of £224m, with £214m in UK revenue and more than 240 partners.

Four HBJ Gateley partners have also joined the executive team heading Addleshaws’ four operating divisions: David Kirchin (corporate), Alan Shanks (finance), Simon Catto (litigation) and Miles Ede (real estate).

John Joyce, Addleshaws managing partner said: ‘The feedback we’ve had from clients so far has been very encouraging, and we are already starting to see the benefits of a combined, UK-wide approach.’

Malcolm McPherson, former HBJ senior partner and now Addleshaws senior partner in Scotland, said in a statement: ‘There are realistic and exciting opportunities for marked growth through our ambition to deliver market-leading advice.’

‘The next few years will present many challenges and opportunities for businesses based or doing business in Scotland, so it’s crucial we have the appropriate reach and expertise to meet their requirements’, he added.

Last year, merger talks between Addleshaws and Maclays to create a national practice with combined revenues of around £230m were called off.

Maclays is one of Scotland’s last remaining major independent firms, following Dundas & Wilson’s 2014 merger with CMS, McGrigors 2012 tie-up with Pinsent Masons, and Clyde & Co’s takeover of Simpson Marwick last year. Maclays had previously entered talks with Bond Pearce in 2011.

kathryn.mccann@legalease.co.uk

Legal Business

News in brief – May 2017

Posted on |
Addleshaw GoddardKing & Wood MallesonsPinsent MasonsReed Smith

PINSENTS LAUNCHES IN MADRID

Pinsent Masons has launched in Madrid, the firm’s third international office in less than a year. The new office comprises six partners, four from local Madrid firm Ramón y Cajal Abogados. The firm has also hired from contractor OHL and promoted a Pinsents associate to partner.

Legal Business

Partner promotions: Drastically reduced round for Addleshaws as Burges Salmon makes up trio

Posted on |
Partnership promotions Addleshaw GoddardBurges Salmon

Addleshaw Goddard and Burges Salmon have announced their latest partner promotions, with Addleshaws seeing a sharp drop in the number of associates being made up from last year.

Last year, Addleshaws promoted 15 lawyers to partner, but this year the firm only made up five. The firm’s corporate and commercial division has gained additions with the promotions of Will Chalk and Oman-based Oliver Stevens while James Davison has been promoted in Addleshaws’ business support and restructuring group. Peter Mason and Hemal Kotecha have been made up in real estate. Last year’s round was a reduction on the 18 promoted in 2015.

Addleshaws managing partner John Joyce commented: ‘It is always a pleasure to recognise the achievements of individuals operating across the firm and we are thrilled to be able to promote these talented lawyers to partnership.

Joyce (pictured) added: ‘Each individual has demonstrated a strong track record of success and will continue to deliver great value to our clients.’

Meanwhile, Burges Salmon has also made three promotions in its latest round, one fewer than last year when the firm promoted four.

Emma Folkes, who joined the firm in 2007 is made up in real estate, while Ian Tucker and Michael Ward have been promoted in disputes.

Burges Salmon managing partner Peter Morris said: ‘We are delighted to welcome these excellent lawyers to the partnership. We have a unique model and collaborative culture at Burges Salmon, and we look forward to seeing all of our new partners thrive in this environment.’

Partner promotions in full:

Addleshaw Goddard

Will Chalk, corporate, UK

Oliver Stevens, corporate, Oman

James Davison, business support and restructuring, UK

Peter Mason, real estate, UK

Hemal Kotecha, real estate, UK

Burges Salmon

Emma Folkes, real estate, Bristol

Ian Tucker, dispute resolution, Bristol

Michael Ward, dispute resolution, Bristol

tom.baker@legalease.co.uk

 

Legal Business

‘A different direction’: Addleshaws GC Callander departs for role at Supergroup

Posted on |
In-house Addleshaw Goddard

Addleshaw Goddard‘s general counsel (GC) Simon Callander is leaving the firm for a role as GC and company secretary at UK fashion retailer SuperGroup.

Callander (pictured) first joined Addleshaws less than two years ago from Olswang, and has also previously held positions as interim UK GC at Equifax and head of business services at Towers Watson. He trained at legacy Denton Wilde Sapte and went in-house to Ernst & Young before joining Watson Wyatt as GC EMEA and then later global head of commercial law.

Callander will start at SuperGroup in May and leave Addleshaws at the end of this month. It is understood that the firm will appoint someone internally to the role.

His specialities include major commercial contract negotiation; business process analysis and review; litigation and risk management’ corporate transactions and post transaction integration and operational leadership and management.

He replaces SuperGroup’s former GC Lindsay Beardsell, who took the group GC role at the newly merged Ladbrokes Coral Group after three years at Supergroup.

Callander’s departure is likely to be a blow to Addleshaws which has embarked on a series of merger discussions over the last year. The firm is due to merge with Scottish firm HBJ Gateley in June, and is also understood to be in merger discussions with US firm Hunton & Williams and German outfit Luther.

In January, Addleshaws re-elected managing partner John Joyce uncontested for a second term. Joyce, who was appointed into the role in May 2014 for a three-year term, will stand for another four-years beginning in May, following recent changes to the firm’s partnership deed that extended the terms of both managing partner and senior partner by a year.

An Addleshaws spokesperson said: ‘The SuperGroup opportunity takes Simon’s career in a new and different direction and he goes with our thanks and very best wishes.’

kathryn.mccann@legalease.co.uk

Read more: ‘Welcome to the John Joyce show: Addleshaws’ head aims to push national firm centre stage’

Legal Business

Addleshaws plans to disband third partnership tier as Scottish merger beds down

Posted on |
Partnership Addleshaw Goddard

Management at Addleshaw Goddard is planning to ultimately phase out its third partnership class, which has been created to accommodate the firm’s merger with Scottish practice HBJ Gateley.

When the merger goes live in June this year, Addleshaws will have three partnership tiers, A, B and C, with B the most senior tier as it contains full equity partners.

The C tier, introduced for the Scottish merger, includes only HBJ partners, but some HBJ partners also sit in the top two tiers at Addleshaws. Partners will be expected to move out of the C class when they are able to bill at rates similar to current Addleshaws partners.

One partner at Addleshaws said the C category has been created for those at HBJ who, on the face of it, wouldn’t be A or B partners under Addleshaws’ existing structure, ‘because obviously the Scottish market means lower rates, lower costs, lower turnover’.

‘If there wasn’t the C category, the relative size, the number of partners and the balance of voting would be skewed. HBJ Gateley is a £20m turnover firm, we are a £200m firm and, proportionately, [HBJ] may have more partners than we do. If they were all admitted to partnership and given votes at the same rate as existing Addleshaws partners, they would have a disproportionately large say given their contribution to the cake. That is the only reason C has been created.

‘We will do away with C as people settle into where they should naturally fit. At Addleshaws we have legal directors, which can be a transition to partnership – or a step sideways – that is our upper tier of seniority below partner. Maybe a C at HBJ is equivalent to an AG legal director, but they are called partners.’

However, recently re-elected Addleshaws managing partner John Joyce (pictured) said: ‘We are not going to go into different categories [of partner]. We just treat them all as partners. We don’t distinguish in our firm at all between fixed share and equity partners.’

A spokesperson added: ‘We don’t and won’t discuss the internal workings of our partnership but there are no plans to change any part of the partnership structure.’

Following a partner vote in November last year, Addleshaws will take over HBJ Gateley’s three Scottish offices in Aberdeen, Edinburgh and Glasgow. The union will see HBJ senior partner Malcolm McPherson join the Addleshaws board. Joyce and senior partner Charles Penney will retain their roles.

Last month Legal Business revealed that Addleshaws has reached a decisive stage in its discussions with US firm Hunton & Williams. It was also revealed in January that Addleshaws is in talks to merge with German outfit Luther.

kathryn.mccann@legalease.co.uk

Read more: ‘Welcome to the John Joyce show: Addleshaws’ head aims to push national firm centre stage’