Conforama, Credit: WikicommonsWeil, 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
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.
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