Allen & Overy has advised Mr Patrick Hessel, founder of c2i s.r.o. (c2i), a highly innovative manufacturer of carbon-fibre components used in the premium car and aerospace industries, on the sale of a majority stake to LG Hausys, Ltd of South Korea (LG Hausys).
LG Hausys is part of the LG Group and focuses, among others, on manufacturing high performance industrial materials. The rationale behind the investment is to tighten LG Hausys’ presence in the promising automotive and aerospace composite components industry in Europe. Both c2i and LG Hausys see significant synergies in utilising c2i's expertise in producing carbon-complex materials and LG Hausys’ expertise in thermoplastics.
LG Hausys has agreed to acquire a 50.1% stake in c2i for EUR 30 million and provide an equity investment of EUR 10 million in c2i. Both amounts are payable in cash on completion. The transaction is noteworthy for the following reasons:
- A&O acted for the founder (sole shareholder) of c2i and also for c2i (the target).
- The sale was organised as an auction with three Asian investors shortlisted (Japanese, Korean and Chinese).
- The term sheets were negotiated in parallel with all three bidders.
- In addition, we negotiated the SPA and SHA simultaneously with two short-listed bidders.
- As the investor initially acquires only a 50.1% stake, the SHA addressed very complex put and call options and complicated option price calculations based on pre-agreed EBITDA and sales multiples.
- The whole process was completed in a very short timeframe of four months from the start of discussions with bidders to signing, and an additional one month for completion.
Partner Martin Magál said: “We are honoured and proud to have advised the seller on this transaction, which will boost the business of c2i and provide LG Hausys with a strong footprint in the composites sector. The successful completion of the transaction within a very short timeframe is a testament to the high level of expertise and skills Allen & Overy has in M&A in Slovakia.”
The transaction was led by partner Martin Magál and associate Tomáš Búry. Employment/benefits advice was given by counsel Katarína Matulníkova.
For further information, please contact Jana Slobodova, firstname.lastname@example.org on 421 (2) 5920 2435.
Notes for Editors:
- Allen & Overy is an international legal practice with approximately 5200 people, including some 530 partners, working in 44 offices worldwide.
- In this press release 'Allen & Overy' means Allen & Overy LLP and/or its affiliated undertakings.
- The term 'partner’ is used to refer to a member of Allen & Overy LLP or an employee or consultant with equivalent standing and qualifications or an individual with equivalent status in one of Allen & Overy LLP’s affiliated undertakings.