Wragge & Co advise KBC on sale of lending division

LAW firm Wragge & Co has advised KBC group on the sale of its asset-based lending division, KBC Business Capital, to New York-listed PNC Financial Services Group for an undisclosed sum.

Corporate partner Richard Haywood, banking partner Paula Laird and corporate director Gareth Baker led a cross-firm, cross-border team on the deal. The disposal, which creates new entity ‘PNC Financial Services,’ is part of KBC’s strategy to refocus on its core markets.

Ms Laird said: “This highly complex, cross-border transaction called upon expertise from across the firm. The intricacies of the loans transferring from KBC to the buyer demanded technical know-how and a pragmatic approach.”

Cameron Marr, general manager, project management office merchant banking, added: “KBC was delighted with the support we received from Paula Laird, Richard Haywood and all the Wragge & Co team on this transaction. They were highly professional, diligent, pragmatic and played a key part in bringing the transaction to a successful conclusion.”

Corporate solicitor Sophie O’Connor, associate Mohammed Majid and banking associate Jon Segal supported. The cross-firm team also included experts from the firm’s financial services, real estate, employment, pensions and commercial practices. Wragge & Co’s Paris-based banking experts also supported. The team worked closely with KBC’s commercial, legal and management teams.

PNC is one of the largest diversified financial services organisations in the United States, with assets of $262bn as of June 30, 2010. Linklaters advised PNC.

KBC Business Capital is the specialist asset-based lending division of Belgian banking Group KBC Bank. It funds mid-sized businesses in the UK with funding requirements starting at £2m.

Wragge & Co has been on KBC’s legal panel since 2008, advising on asset-based lending, property finance, corporate banking and employment. A long-standing and valued legal adviser, the firm’s instructions from the bank include advising on its £31m financing of Burn Stewart Distillers Ltd.

The Birmingham law firm’s M&A highlights in the last six months include advising the rail freight subsidiary of cross-Channel operator Eurotunnel Groupe on the acquisition of GBRf from FirstGroup plc.

The firm also advised two of the investors involved in funding AMF Bowling’s acquisition of rival ten-pin bowling business Hollywood Bowl. New client Bioline group also instructed the firm’s corporate experts to complete its £15.2m ($23.3m) cross-border acquisition by NASDAQ-listed Meridian Bioscience Inc.