Weil, Latham and A&O Among Elite Line-Up On €4B French Home Furnishings Deal
The merger of the No. 2 and No. 3 players in France would create a national champion to compete with Ikea, the current market leader.
July 16, 2020 at 05:15 AM
3 minute read
Conforama, Credit: Wikicommons
A clutch of major international law firms including Villey Girard Grolleau, Weil Gotshal & Manges, Latham & Watkins and Allen & Overy are advising on a €4 billion French home-furnishings merger that would create a national champion to compete with Ikea, the current market leader in France.
Conforama France, the third-largest retailer of furniture, appliances and home accessories in France, has agreed to be acquired by Mobilux, a private-equity joint venture that is a shareholder in BUT, the second-largest market player.
The combined entity would have over €4 billion in annual revenue. BUT's market share in 2019 was 10.9% and Conforama's 10.4%, according to industry figures.
French firm Villey Girard Grolleau advised Conforama, according to a release by the firm, led by firm co-founder Daniel Villey.
Meanwhile, Gibson Dunn & Crutcher partners Jean-Pierre Farges and Bertrand Delauney advised on M&A, with Nataline Fleury on labor law, while fellow U.S. firm Willkie Farr & Gallagher advised on merger control.
Mobilux is being advised by Weil Gotshal & Manges and Willhelm & Associés. According to a release by the firm, Weil has deployed a Paris-based team led by partners Jean Beauchataud and David Aknin on corporate law, Anne-Sophie Noury on restructuring, James Clarke and Olivier Jauffret on banking and finance, and Edouard de Lamy and counsel Alexandre Groult on tax.
Latham & Watkins, Allen & Overy and Santoni & Associés advised the lenders, according to a deal statement by Villey.
The Latham team was led by Paris finance partner Xavier Farde with counsel Carla-Sophie Imperadeiro, according to the firm.
White & Case advised the Conforama bondholders with a Paris-based team led by partner Saam Golshani and including partners Denise Diallo, Alexandre Ippolito, Alexandre Jaurett and Bertrand Liard and counsel Jean Paszkudski, according to a separate statement by the firm.
De Pardieu Brocas Maffei advised Tikehau Capital, a Conforama creditor, according to Villey.
Ikea, whose 2019 market share in France was 15.43%, has been expanding aggressively into the French market. The €39 billion Swedish company last year announced plans to invest €400 million over three years to develop city center stores in France.
Conforama France, which has been controlled by the Steinhoff group of South Africa since 2011, has seen its financial difficulties worsen due to the health measures taken during the COVID-19 pandemic. The takeover by Mobilux is part of a business recovery plan to ensure the French company's future, according to company statements.
Conforama France was granted a €100 million state-guaranteed loan under a program to support businesses impacted by the COVID-19 crisis. A second loan of €200 million euros will be issued upon final completion of the transaction. Mobilux has also granted a €50 million bridge loan.
The transaction is subject to approval by the French competition authority and is expected to close in the third quarter of 2020, according to company statements.
Read More
Clifford Chance Leads On 2 Multibillion-Euro Deals in France
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
Goodwin's Singapore Private Equity Partner Leaves to Join Key Client Hillhouse Investment
Law Firms Mentioned
Trending Stories
- 1Departing Attorneys Sue Their Former Law Firm
- 2Pa. High Court: Concrete Proof Not Needed to Weigh Grounds for Preliminary Injunction Order
- 3'Something Else Is Coming': DOGE Established, but With Limited Scope
- 4Polsinelli Picks Up Corporate Health Care Partner From Greenberg Traurig in LA
- 5Kirkland Lands in Phila., but Rate Pressure May Limit the High-Flying Firm's Growth Prospects
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
