Herbert Smith Rolls Up for British American Tobacco's $4 Billion Danish Deal

Source from:  Michelle Madsen Legal Week March 4, 2008 03/05/2008

Herbert Smith has bagged a plum role advising regular client British American Tobacco on its £2.05 billion ($4.07 billion) acquisition of businesses from Danish tobacco giant Skandinavisk Tobakskompagni. The deal, which is subject to European Commission approval and is expected to be completed later this year, will see BAT buy up a number of Skandinavisk's smokeless and roll-your-own tobacco interests. As part of the deal, BAT is exchanging its existing £904 million ($1.8 billion) 32.5 percent stake in Scandinavisk and will pay a further £1.15 billion ($2.28 billion) to complete the deal. Herbert Smith corporate partner Austin Sweeney is leading the team for the top 10 U.K. firm, which started working on the deal at the end of last year. He is joined by fellow corporate partner James Palmer, as well as Frans Rossen of Danish firm Delacour. Scandinavisk is being advised by "big four" Danish firm Kromann Reumert. Sweeney said in a statement: "This deal is a further demonstration of our continuing strong relationship with BAT and of our experience in advising on complex cross-border transactions." The news comes after Herbert Smith last month landed a coveted advisory role on the £1.2 billion ($2.38 billion) acquisition of waste management company Biffa by a private equity consortium fronted by buyout powerhouses Montagu Private Equity and Global Infrastructure Partners. Skandinavisk is one of the biggest tobacco companies in northern Europe, with operations in over 40 countries and more than 12,000 employees worldwide. Enditem