‘Milestone’ move as DWF completes Cobbetts deal
LAW firm DWF has competed a deal to acquire troubled rival Cobbetts.
Cobbetts filed notice that it intended to appoint KPMG administrators last week following poor trading in November and December last year.
The Cobbetts team comprises a total of 491 people, of which 72 are partners.
Based across offices in Manchester, Leeds, Birmingham and London, they will migrate across to existing DWF office space within the next few weeks to support the integration with their respective counterparts.
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.
The move excludes Andrew Bennett and his Leeds-based banking litigation team.
The acquisition will also not include the Cobbetts’ Yorkshire-based debt recovery team, Incasso.
DWF managing partner Andrew Leaitherland hailed the deal as “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.”
Mark Firmin, Brian Green and Howard Smith of KPMG’s restructuring practice are the joint administrators for Cobbetts and were appointed yesterday before the deal was then struck.
Mark Firmin, UK regions head of restructuring at KPMG, 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.”
Pinsent Masons advised KPMG. The team was led by Steven Cottee and comprised Nick Gavin-Brown as well as Leeds-based Jonathan Jeffries, Dawn Allen and Claire Sharf.
The sale and purchase agreement was drafted and negotiated by Ms Allen, with Ms Sharf leading on the court application and witness statements.
Mr Jeffries, a partner at the firm, has been appointed by the SRA and KPMG as the solicitor manager and will be liaising closely with both regarding the administration.
Mr Cottee said: “We were delighted to assist KPMG, the administrators of Cobbetts, 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 firm.”
Deloitte’s Manchester office provided tax, accounting, insolvency and strategic advice to DWF on the transaction. The team was led by restructuring services partner Bill Dawson and assistant director Rick Harrison.
