private equity deal
DLA Phillips Fox recently completed a private equity acquisition of a franchise group when they acted for Cartridge World (operating across 42 countries) in its acquisition by the Wolseley Private Equity Fund together with co-investors.
Peter Buberis acted as lead partner from a franchising perspective, for long-time client Cartridge World, whilst Richard Moshinsky was lead partner on the mergers and acquisitions aspects. In addition to mergers and acquisitions work, DLA Phillips Fox advised on the due diligence process, relevant IP issues including transfer of multiple trade marks and master franchise agreements and financial aspects including discharge of the old financier and introduction of the new financier.
Wolseley Private Equity Fund and co-investors have taken a 70% shareholding in the business while the vendors retain 20% and a seat on the board of the new holding company. The remaining 10% of the holding company is held by Cartridge World’s Australian, British and US senior management team.
Through our exclusive alliance with DLA Piper, one of the largest legal services organisations in the world, we were able to provide Cartridge World with representation in Australia, the United States and 40 other countries in which the Cartridge World business operates. ‘DLA Piper offices in Washington, Leeds, Luxemburg, Paris and New York and DLA Phillips Fox offices in Adelaide and Melbourne were involved in the transaction. The client received a consistent and integrated service from all of these offices. The legal issues varied across jurisdictions yet were managed efficiently due to our local knowledge in each country,’ said Mr. Moshinsky.
The new owners of Cartridge World are aiming for aggressive expansion to 5000 stores in the next few years (based on 1600 now) and are investing capital into this initiative. DLA Phillips Fox has been involved with Cartridge World since its inception 12 years ago. ‘The DLA Piper global alliance has facilitated a streamlined, coordinated transaction for Cartridge World,’ said Mr. Buberis.
Partner Neil Kandelaars was also instrumental in the deal along with lawyers Michael Jackson in Melbourne and Fiona Trethewey and Iain Irvine in Adelaide.