Vanessa Pawsey
Taylor Joynson Garrett has advised Italian company Merloni Elettrodomestici on its acquisition of 50 per cent of UK domestic appliance manufacturer GDA from Marconi for l195.5m (£120.8m). The remaining 50 per cent is owned by General Electric (GE).
Merloni, whose primary brands are Ariston and Indesit, is a new client for Taylor Joynson and the firm was instructed after a competitive tender process.
Taylor Joynson partner Declan Tarpey led the negotiations with GE, while partner Daniel Rosenberg led the M&A side of the deal.
Completion followed authorisation for the deal from the European Commission earlier this month.
The deal was pushed through quickly, coming just over two months after Marconi announced that it had agreed a sale. Proceeds from the deal will be used to reduce Marconi's debt and the company was eager to close the deal as quickly as possible.
The deal was financed out of existing resources and bank facilities.
The Milan office of Italian firm Studio Chiomenti adv-ised alongside Taylor Joynson, while Marconi was advised by Julian Long at Freshfields Bruckhaus Deringer.
Rosenberg expects to get more work from Merloni. "There are a number of issues, including pensions and environmental matters, which will need looking after, and we hope that we'll get more work," he said.
GDA produces a range of domestic appliances, including fridges, cookers and washing machines. The acquisition makes it the UK's largest supplier.
A Merloni spokesperson said the company could acquire the other 50 per cent from GE. However, GE has no immediate plans to sell.
Marconi's sale is part of the group's strategy to focus on its core communications business.
