21 November – LAWFUEL – The Law News Network – Allen & Overy advised Cobham plc on the £150 million disposal of its Fluid and Air division companies to U.S.-based Eaton Corporation.
The disposal of the Fluid and Air division was structured as the sale of the entire share capital of FR-HiTEMP Limited in the United Kingdom, FR-HiTEMP Inc and Stanley Aviation Corporation (together with its wholly owned subsidiary) in the United States and Stanley Corporation Europe SAS in France.
London-based corporate partner Richard Browne led the Allen & Overy team. Partner Derek Sloan advised on pensions aspects.
Commenting, Richard Browne said: “We are delighted to have acted for Cobham on this transaction which is a successful step in the implementation of Cobham’s strategy to focus on six divisions aligned to key technology and service sectors.”
Pension’s partner Derek Sloan added: “The disposal meant that FR-HiTemp was required to cease its participation in the Cobham Pension Plan. During the deal, legislation governing the withdrawal of participating employers in multi-employer defined benefit schemes changed significantly, resulting in the need to pay into the scheme certain sums on the completion of the disposal. A reduction in the amount payable was agreed with the trustees and the agreement approved by the new Pensions Regulator. This is one of the first instances of the Regulator approving such an arrangement.”