Pannone agrees £33m Slater & Gordon deal
SLATER & Gordon, the aggressive Australian legal consolidator has announced a £33m deal to buy the consumer law business of Pannone, the Manchester firm.
The long-anticipated deal will see around 400 staff transferring to Slater & Gordon, adding £34.5m in revenues.
The remainder of the firm will become a standalone practice led by litigation partner Paul Jonson named Pannone Corporate.
The Australian group – which has already acquired a number of practices including Russell Jones & Walker, Goodmans and Fentons – is paying an initial £18.5m, upfront equity – subject to restraints on sale – of £3.5m, cash of £7m deferred over the next four years and deferred equity of £4m over three years.
Pannone’s ability to grow and compete in a fast-changing legal marketplace has been constrained by its debt-pile of more than £11m.
Slater & Gordon Head of UK, Neil Kinsella said the acquisition of Pannone, would make the firm the largest firm in Manchester and take its UK staff numbers to more than 1,200.
He said: “This acquisition will transform us into a significantly larger firm offering a broader range of legal services and allowing us to help more clients in their fight for justice.
“The planned acquisition of Pannone is a vital step in our strategy for growth, bringing us closer to our aim of becoming the UK’s leading law practice for every day people.
“I am pleased to welcome Pannone’s people into the Slater & Gordon family and I am sure they will add a great deal to our skills and capability. We believe Pannone is an ideal partner for Slater & Gordon. I am particularly pleased that this transaction significantly increases our personal injury practice area, while also reinforcing our commitment across a broad range of personal legal services.
Pannone managing partner, Emma Holt, pictured, said: “This is an exciting time for 
Pannone and we see this as a significant opportunity that will be beneficial to our clients and our people.
“We look forward to working towards the completion of this deal with Slater & Gordon, the result of which will make us a stronger advocate for our clients as we continue to put them at the centre of everything we do.”
Upon completion, in early 2014, Slater & Gordon will acquire the majority of the practice groups of Pannone, including personal injury and serious injury; clinical negligence; court of protection; family; wills, trusts & probate; property; as well as some elements of the employment and dispute resolution practice areas.
