National firm advises Montagu on Warburg Pincus purchase

Hammonds took a leading role advising on the sale of survival equipment maker Survitec Group to US private equity firm Warburg Pincus for nearly £280m.

The national firm advised longstanding private equity client Montagu on its £274m disposal of the company, which focuses on serving the marine, military, aerospace and homeland security markets, to buyout house Warburg Pincus.

Hammonds' Leeds office head and corporate partner Jonathan Jones led the team advising Montagu on the deal, which is expected to close next month, assisted by senior associate Giles Chesher. The firm also advised Montagu on its original acquisition of Survitec in 2004 for £146m.

Clifford Chance corporate partner Spencer Baylin led the team advising Warburg, which put up approximately £150m of equity to fund the acquisition.

A syndicate of lenders, led by Lloyds Banking Group and including HSBC, UniCredit, Bank of Ireland, ING, General Electric and Societe Generale, provided £130m in debt.

Allen & Overy banking partner Cathy Bell-Walker, assisted by senior associate Derek Hrydziuszko, advised the banks, while SJ Berwin corporate partner Richard Lever led a team advising Survitec's management on the equity arrangements.

Jones told Legal Week: "It is a nice conclusion to sell it and see our involvement with the company go full circle. With Survitec's worldwide operations it was challenging but exciting to pull together everything from each jurisdiction."

He added: "It does feel like things are picking up in the market, but one swallow does not make a summer."

The deal comes as the private equity market shows signs of recovery after being hit badly by the downturn. Last month Kohlberg Kravis Roberts & Co's (KKR's) purchased pet supplies chain Pets at Home from Bridgepoint Capital for £955m. That deal saw Simpson Thacher & Bartlett advising KKR, Travers Smith advising regular client Bridgepoint and DLA Piper advising Pets at Home's management.

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