Sherrards act for Sphering Group
The Sphering Group is a front-line player in flue and air care in Europe with a renowned expertise in design, manufacturing and distribution of innovative high-quality chimney and ventilation systems.
The Sphering Group wanted to expand its European presence with a location in the UK and targeted a competitor, SFL Ltd, previously part of the Stamm International Corp. who was the No. 2 manufacturer of flues and chimneys in the UK with well-established distribution in the USA and Far East.
Sherrards were introduced to Sphering Group via the London division of the French Chamber of Commerce and were quickly instructed to assist on the targeted acquisition of SFL.
This was Sphering Group’s first targeted UK acquisition of a trading business, and the deal took almost two years to complete due to the cross jurisdictional nature and complexities in the company raised during the research phase and resulting in a complicated escrow fund held by J P Morgan on behalf of the parties and to cover against potential and significant risks of claims associated with the trading business.
The acquisition was eventually successful and adds R&D capabilities and a sixth manufacturing plant to Sphering Group’s industrial capacities already operating in France, Italy, Belgium, Germany, and Poland. With the integration of SFL teams, the Group now employs 800 people across Europe.
To find out more, contact Kiall Bagnell.
The Corporate team assist International Client, Guangdong Xinbao Electrical Appliance Holdings
Sherrards coordinated directly with Donlim and acted alongside a major law firm in China, as the transaction was subject to extensive negotiations, including requiring approval from the Chinese government. The transaction was completed in March 2023.
Donlim is headquartered in Shunde, Guangdon, China, and is a major manufacturer of home kitchen appliances and other electrical products, with over 28,000 staff and revenues of RMB 14.9 billion in 2021. Donlim wished to expand its portfolio of international brands by acquiring Morphy Richards, a well regarded British brand established in 1936, and for whom Donlim had been manufacturing products under contract for some time. MRCA was, before the transaction, owned by Glen Dimplex, an Irish company, and has substantial operations in the UK in addition to other major markets in China, Ireland, Australia and New Zealand. Glen Dimplex retained the rights to the Morphy Richards brand in other key international markets. The transaction received significant press coverage in the UK and Ireland.
Following completion, Donlim has acquired a permanent presence in the UK and will use this as a platform to expand its consumer appliances offering in the UK market, as well as now having the benefit of an esteemed British brand to use in its operations overseas.
To find out more, contact James Crook.