Total cost of Olswang and Nabarro acquisitions unveiled in CMS accounts
Post-merger LLP filings reveal higher new top of equity, sizeable acquisition costs and a large bank facility
January 24, 2019 at 04:21 AM
3 minute read
The costs of acquiring Nabarro and Olswang have been laid bare in CMS's 2017-18 limited liability partnership accounts, offering the first detailed insight into the financial implications of the three-way merger.
The accounts – which cover the global firm's UK arm, now known as CMS Cameron McKenna Nabarro Olswang – reveal that on the 1 May 2017 transaction date, Nabarro had net assets of £51.3m, and Olswang £15.5m, equating to a total acquisition cost of £66.8m.
The acquisition costs include assets and cash in the bank, minus the figures the two firms owed to creditors, which stood at £37.7m for Nabarro and £42m for Olswang.
The accounts also reveal that shortly after the merger in September 2017, CMS set up an £85m unsecured revolving credit facility with Lloyds Bank and RBS, which the firm said was to cover "the short-term financing of merger costs and fit-out of premises, as well as providing a contingency fund, should it be needed". Last July, the facility was stepped down early to £65m.
The filing also showed a total of £28.9m has been charged to the group profit and loss account in respect of "costs incurred in reorganising, restructuring and integrating" the three firms in the wake of the merger. Last year, CMS managing partner Stephen Millar told Legal Week that the cost of combining the three firms would be about £45m, paid over two years.
The three-way combination created a firm with revenues of £521.9m, up 88% from CMS Cameron McKenna's 2016-17 revenues of £277.5m, according to the accounts. On a like-for-like basis, the £521.9m figure is approximately 3.5% up on the combined 2016-17 revenues for CMS, Nabarro (£131.1m) and Olswang (£95.8m).
The best-paid partner at the combined firm took home £1m during 2017-18, up from CMS Cameron McKenna's equivalent pre-merger figure of £798,000. Nabarro's top-of-equity figure for the final year before the merger stood at £1.07m, while Olswang's best-paid partner took home £727,000 in 2016-17.
The accounts explain that CMS intends to eliminate legacy Nabarro's pensions deficit, estimating that £4.85m in contributions will be paid into the scheme this year as part of a push to pay off the deficit in its entirety by 1 May 2022.
CMS, Olswang and Nabarro merged on 1 May 2017, creating the eighth-largest firm in the UK. The average number of partners at the combined firm is 376, which is 178 up from CMS Cameron McKenna's pre-merger figure of 198.
With the addition of Olswang and Nabarro, total staff headcount rose 43% to 2,370, with salary costs more than doubling from £74.1m to £163m.
Total remuneration for the firm's key management personnel increased from £2.8m to £3.9m, although the firm declined to specify which partners are included in this group and how it had changed in the wake of the merger.
Last June, CMS posted global revenues of €1.3bn (£1.15bn) for the 2017 calendar year, in its first combined results since the merger.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 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 AllLinklaters Sees Latest Partner Exit as UK Leveraged Finance Partner Walks To Simpson Thacher
2 minute readEx-Dewey & LeBoeuf Banking Lawyer on Trial in Germany’s Cum-Ex Tax Scandal
DLA Piper & Hogan Lovells Expand German Construction and Property Practices
2 minute readWhite & Case, Cleary Among Firms Gearing Up for Biggest London IPO Since 2022
3 minute readTrending Stories
- 1First California Zantac Jury Ends in Mistrial
- 2Democrats Give Up Circuit Court Picks for Trial Judges in Reported Deal with GOP
- 3Trump Taps Former Fla. Attorney General for AG
- 4Newsom Names Two Judges to Appellate Courts in San Francisco, Orange County
- 5Biden Has Few Ways to Protect His Environmental Legacy, Say Lawyers, Advocates
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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