DWF and Cobbetts is a done deal
DWF has sealed its acquisition of Cobbetts via a pre-pack deal.
An agreement has been reached which will see DWF take on the bulk of Cobbetts’ business, with 419 of the law firm’s employees and partners from its four offices in Birmingham, Manchester, Leeds and London set to transfer to DWF.
What will happen to Cobbetts’ plush offices at No 1 Colmore Square in Birmingham remains unclear as DWF has said Cobbetts staff will move across to its offices in the next few weeks.
Graham Muth, who headed up Cobbetts’ Birmingham office, has been made a partner at DWF. He described the last few weeks as an interesting experience but one that he wouldn’t like to repeat.
KPMG acted as the firm’s administrator. Mark Firmin, Brian Green and Howard Smith of KPMG’s restructuring practice were appointed as joint administrators.
As part of the deal, DWF will honour all training contracts which includes those already in place, as well as those contracts entered into with trainees who are yet to start.
DWF managing partner Andrew Leaitherland hailed the deal as a “milestone” for the ambitioous firm.
He said: “Both firms agreed that this was the best route forward and so the process was a smooth one, with the two parties working towards the same outcome.
“This is the latest milestone in what is already proving to be a positive year for DWF and one that continues along our clearly defined plan of strategic growth. It’s crucial that when exploring deals such as these we are certain that the move is the right one, and we’re extremely confident that this is the case, with it further reinforcing our sector expertise, business knowledge and our ability to best serve our clients’ business interests.”
KPMG’s Firmin said: “In the current economic climate we are delighted to have brokered a deal that saves more than 400 jobs, We have moved swiftly, working in collaboration with a number of stakeholders including the Solicitors Regulation Authority. This is a strong result and an important step forward for DWF in the market.”
Advising KPMG on the deal was a team from rival law firm Pinsent Masons.
Heading the team was Restructuring partner Steven Cottee, alongside Jonathan Jeffries, Dawn Allen, Claire Sharf and Nick Gavin-Brown.
Mr Cottee said: “We were delighted to assist KPMG in completing an immediate pre-pack sale to DWF. This was a complex restructuring transaction conducted in a very short period and the transaction has helped protect the interests of a significant number of employees and clients of the (Cobbetts) firm.”
Mr Cottee previously advised the administrators of Hextalls – the first city law firm to go into administration and acted for Hill Dickinson on the purchase of the Liverpool and Sheffield offices from Halliwells. He also assisted the Solicitors Regulation Authority (SRA) in establishing a protocol for dealing with law firm insolvencies.
