Kirkland and Sidley take charge of Bain finance deal

Kirkland & Ellis and Sidley Austin have scored lead roles on Bain Capital’s cash injection into Chinese retailer Gome Electrical Appliances.

Kirkland Hong Kong-based partner David Eich advised Bain on the $630m (£319.53m) investment, while Sidley advised Gome on the deal using a team
led by Hong Kong-based ­partner Constance Choy.

As part of the deal Bain has agreed to acquire Gome’s $200bn convertible bonds and will spend up to $430m underwriting a rights ­offering of new Gome shares, equal to 18 per cent of its share capital.

Kirkland has a longstanding relationship with private equity house Bain. Earlier this year Kirkland London office head Jim Learner advised the ­company as well as private equity house Clessidra Capital Partners on the acquisition of Italian ­company Cerved Business Information.

In 2007 The Lawyer reported (9 July 2007) on ­Kirkland cementing its ­relationship with Bain by advising the company on Samsonite’s $1.7bn buyout by CVC Capital Partners. Kirkland advised Bain as a major shareholder in the luggage company, with Learner ­leading the team on the deal.

Sidley advised Gome on its 2004 Hong Kong IPO.

As part of the Bain ­investment, the private equity house will gain three seats on the 11-strong Gome board.

Kirkland declined to comment, while Sidley was unavailable for comment.