Addleshaw Goddard set to acquire Gateley’s Scottish operations
BIRMINGHAM-based law firm Gateley is set to sever ties with its Scottish operation paving the way for what is expected the annexe of the operation by a rival law firm, though to be Addleshaw Goddard.
In a brief statement Gateley and its Scottish arm, HBJ Gateley said a longstanding business agreement between the two operations would end next year.
The joint statement from Gateley plc and HBJ Gateley states: “Gateley plc in England and HBJ Gateley in Scotland have announced that their long standing business relationship will come to an end in May next year. Until then, both firms will continue to work together in the best interests of all clients.”
The link between the two firms stretches back a decade to 2006 when the then Gateley Wareing in Birmingham merged with Henderson Boyd Jackson in Edinburgh. The partnership expanded in 2014 when HBJ opened an office in Aberdeen.
However, HBJ was never part of Gateley plc, effectively leaving it free to pursue other suitors.
The most likely scenario is that HBJ will become part of Addleshaw Goddard. The two firms are currently in talks about how a merger might work.
In a statement, the two parties said they were exploring the potential benefits of a combination.
It said transaction, which is driven by a desire to improve client and sector offerings, was subject to approval by both partnerships, who aimed to reach a decision over the coming weeks.
John Joyce, Managing Partner, Addleshaw Goddard, said: “A combination would deliver on both firms’ aspirations for improved client and sector offerings across the whole of Great Britain. We are culturally aligned and bringing both businesses together will enhance each firm’s bench strength, give greater flexibility and provide a more robust platform from which to establish stronger market positions across core practice areas and in the financial services and real estate sectors in particular.”
Malcolm McPherson, Senior Partner, HBJ Gateley, added: “There is a clear and compelling rationale behind this proposal. Clients are increasingly demanding true strength in depth across a range of core specialist disciplines and our exploratory talks progressed very quickly as the complementary nature of our teams and geographical presence became apparent.
“A strong cultural fit is at the heart of all successful legal deals and both firms share a pragmatic, commercial approach to client service. Given the partner voting process, we’re taking nothing for granted but are quietly excited about the potential for creating something rather special, given our strongly aligned sector focus and specific critical mass in financial services and real estate.”
It is intended that the business, people and partners of HBJ Gateley will transfer to Addleshaw Goddard. A combination would have 11 offices, over 230 partners, more than 1,100 lawyers in total, and a combined fee income of c. £224m, based on each firm’s 2015/16 year-end. It would rank 15th by UK income.
Neither firm said they would be commenting further until discussions conclude.
