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Baker McKenzie announces global revenues of $2.9 billion

Baker McKenzie has announced revenues for the fiscal year ended 30 June 2020 (FY20) of $2.9 billion. In terms of constant currency revenues were up 1.2% compared to the previous year. In US dollar terms, the Firm’s reporting currency, this translates into a flat year (FY19 $2.92 billion), after the effect of adverse currency movements during the year.

All of our regions recorded growth in constant currency terms – Asia Pacific up 1%, EMEA higher by 2%, Latin America rose 2% and North America increased 1%. In US dollar terms, three out of our four regions – Asia-Pacific, EMEA and North America – each experienced slight growth. Latin America revenues, however, fell by 12% in U.S. dollar terms, highlighting the weakness of currencies in that region during FY20. The first quarter of FY21 has continued that growth with revenues and profitability up in all four of our regions.

Our PPP for FY20 is down 12% year-on-year as compared with FY19, reflecting the significant investments we made in new technology, infrastructure and laterals and other talent, as well as the negative impact of FX. Over the last decade the Firm has grown by 37% in terms of revenue and 31% in terms of PPP.

We saw revenue growth in our two largest markets – the United States and the UK. Some of our markets that saw high single-digit or double-digit growth include: Thailand, Singapore, South Korea, Netherlands, Belgium, Sweden, Luxembourg, Hungary, Egypt, Kazakhstan and Morocco.

Milton Cheng, Global Chair, Baker McKenzie says, “I am proud of how our Firm has stepped up this past year to record a reasonable set of results, given the economic and logistical headwinds we have faced since January and the softening of demand we saw in the final quarter of FY20. It is a strong demonstration of our collective resilience.

“We continue to look to the future. Despite the ongoing challenges of COVID-19 and the decline in economic activity in many parts of the world, Baker McKenzie is heading into FY21 with confidence, bolstered by our client base, resilient team, and exciting investments in the future of our industry and communities. The Firm has appointed new leaders, including our first Chief Sustainability Officer, as well as announcing our innovation arm Reinvent.

“A record number of lateral hires these past 12 months combined with our continued commitment to developing home- grown talent, as well as our significant investments in technology and our new services centres ensure that we are well prepared for a new set of challenges over the next decade.

“We have also learnt how to collaborate, work and socialise together in new and innovative ways that bring out the very best of Baker McKenzie. We transitioned smoothly to working remotely, with nearly all of the teams in our offices across the world working from home for significant periods of time over the past months.”

Hogan Lovells advises Ingredion on its £185 million acquisition

International law firm Hogan Lovells has advised NYSE-listed firm Ingredion, a leader in the plant-based ingredient solutions market, on its £185 million acquisition of PureCircle, a London-listed producer of stevia sweeteners. The acquisition advances Ingredion’s specialties strategy for sugar reduction and will support future sales growth.

The takeover was implemented by way of a scheme of arrangement with PureCircle shareholders having the option to receive cash or shares in the Ingredion Bidco. Ingredion have also invested a further US$130 million into PureCircle by means of an equity injection, and a result of this acquisition will control 75 percent of PureCircle. The transaction was announced in April, though completion was subject to the satisfaction of a number of conditions, including obtaining antitrust clearance in the United States.

The corporate team was led by corporate partners Maegen Morrison (in London), together with Bill Curtin and Richard Parrino, based in Washington, D.C. They were supported by teams in China, the United States, Belgium and London across a variety of practice areas including antitrust, corporate, data protection, employment, employee share schemes, IP, real estate, and pensions.

Commenting on the deal, partner Maegen Morrison said: “It has been a pleasure to work with Ingredion on its first public acquisition in the UK. The transaction is yet another example of the breadth and depth of our global practice and our ability as a firm to work seamlessly across jurisdictions and practices, in close conjunction with our client’s legal and deal teams, even when working remotely.”

Global Head of M&A, Bill Curtin added: “We are honoured to serve as M&A counsel to Ingredion, drawing upon our ability to execute cross-border transactions in regulated industries and by providing our global resources to promote our clients’ continuing success.”

Bringing true mettle to complex multijurisdictional deals

Eversheds Sutherland has advised Sims Metal Management Limited (Sims) on the agreed €83.5m sale of its European compliance scheme orientated recycling operations to German-based TSR Recycling, a subsidiary of REMONDIS Group.

Sims is one of the world’s largest metal and electronics recyclers with over 250 facilities, including joint venture operations, in 18 countries.

The operations that have been sold are located in Germany, Austria, the Netherlands, Belgium and Sweden. The deal, which is subject to competition approval by the European Commission, includes the sale of Sims’ waste electrical and electronic equipment (WEEE) treatment facilities in Sweden, Norway, Belgium and the Netherlands.

The sale does not include Sims’ global e-recycling IT asset disposal business.

The multijurisdictional Eversheds Sutherland team was led by corporate Partner James Trevis with Principal Associate Anthony Cross (corporate, Germany) and Senior Associate Thomas Plant (corporate, UK).

The wider team included Partners Peter Harper (competition, UK), Simon Weppner (tax, Germany), David Beswick (employment, UK), Jane Southworth (EHS, UK) and Tom van Wijngaarden (corporate, Netherlands), Consultant Stephen Rose (competition, UK), Principal Associates Evy Verhaeghe (corporate, Belgium), Claire Morgan (competition, UK), Anique Bitterlich and Marieke Koster (both employment, Netherlands), Senior Associates Christian Lindner (corporate, Germany), Michael Hardiman (employment, UK), Lukas Ploesch (corporate, Austria) and Laetitia Goor (real estate, Netherlands) and Associates Jake Perryman (corporate, UK), Rachael Tattersall (EHS, UK) and Dane Stattin (corporate, Sweden).

James Trevis commented: “This was a complex, multijurisdictional deal where strong collaboration and careful project management was absolutely key. We have a long standing 20 year relationship with Sims and we’re delighted to have been able to assist on what is a notable transaction for them. We look forward to continuing to support Sims in the future.”

Josef Malik, Director of Business and Legal Affairs at Sims Metal Management Limited, commented: “This was a strategically important deal for our company and we are pleased with this outcome. The Eversheds Sutherland team was excellent, combining a comprehensive understanding of our business with first class legal advice, commercial nous and innovative solutions to ensure the very best result.”