Freshfields wins GSCP’s buyout of Pirelli Cavi

Freshfields Bruckhaus Deringer has advised Goldman Sachs Capital Partners (GSCP), the US-based private equity arm of Goldman Sachs, on its first major investment into Italy.


Freshfields Bruckhaus Deringer has advised Goldman Sachs Capital Partners (GSCP), the US-based private equity arm of Goldman Sachs, on its first major investment into Italy.

The magic circle firm advised GSCP on its acquisition of Italian energy and telecom cables business Pirelli Cavi e Sistemi. The deal, valued at E1.3bn (£880m), includes 53 plants across 28 jurisdictions, IP rights and Pirelli brand licensing for two years. Pirelli has also taken a warrant which allows it to share up to 5 per cent of the economic value uplift generated by GSCP.

GSCP, which usually co-invests with other equity houses, will be investing alone on this occasion after outbidding US private equity houses Bain Capital and Texas Pacific. The closing of the deal is still pending and will need to be approved by UK pension funds, the antitrust authorities and the French economy minister.

Former Linklaters Italian ally Gianni Origoni Grippo & Partners is advising GSCP in relation to the Italian bid, while Bonelli Erede Pappalardo and Slaughter and May are advising Pirelli.

The Freshfields team was led by Laurie McFadden.