Successful closing of an M&A transaction supported by I-PRO’s Legal Team
I-PRO’s legal team successfully represented a tech manufacturer - LEDEL (Kazan) in sale of 64% of its shares to one of the leading Russian lighting equipment manufacturers IEK GROUP. Representing the seller we took care of all formalities with regard to the legal side of the transaction, including the drafting of an M&A agreement and its negotiation with the buyer.
Our client - LEDEL was found in 2009 and since then became one of the significant players at the Russian market of production of complex high-tech lamps with RUB 1,1 billion in revenue in 2017. Nowadays it owns 94 invention patents, among which 32 were issues by international bodies.
The buyer - IEK Group - is one of the biggest manufacturers of electrical and lightning equipment in Russia with RUB 10,8 billion in revenue in 2017. The company produces switches, circuit breakers, meters, fuses, cable management systems, extension cords, panels and lighting equipment for domestic, commercial and industrial use.
At the closing ceremony that took place at Reiffeisenbank’s office, CEO’s and owners of both companies admitted that this transaction is in interests of both companies and, according to the estimate provided by their business consultants, will help them to increase their joint share in the Russian lighting equipment market up to 5 % within the coming years.
In his speech, the co-founder of LEDEL – Arthur Kogdanin said: “LEDEL always aimed to be the market leader and the integration with IEK GROUP will help us to maximize our potential in order to reach this goal in the nearest future. I, personally, would like to emphasize the high quality of legal support provided by our consultants. Thanks to their professionalism we managed to finalize this project successfully within a tight time frame. Despite the complexity of the deal it was very well structured by the consultants, each of which took personal care of his particular aspect of the transaction, the subject that he is expert on. Thanks to their tremendous work, we, as business, felt ourselves fully supported during this journey.”
In his turn, Shamil Salavatov, the Managing partner of I-PRO, added that this M&A transaction could be a perfect example of a constructive and well-coordinated collaboration between consultant's teams and the companies' owners, whose work in close proximity with the consultants during the preparation and negotiation of the deal made a huge input in its successful closing. Today I-PRO’s legal team is truly proud to be a part of this project as a consultant and share this common success with both LEDEL and the IEK GROUP.
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