Deal watch: Baker McKenzie and Slaughter and May drink in £3.1bn Horlicks acquisition as AJ Bell IPO yields dividends for Pinsents and Addleshaws

Deal watch: Baker McKenzie and Slaughter and May drink in £3.1bn Horlicks acquisition as AJ Bell IPO yields dividends for Pinsents and Addleshaws

As the market hunkers down for the festive season, GlaxoSmithKline’s (GSK) £3.1bn sale to Unilever of Horlicks has warmed the cockles of City teams from Baker McKenzie and Slaughter and May, while Pinsent Masons and Addleshaw Goddard have won key mandates on what is likely the year’s last big London listing.

The GSK deal sees it sell its malted drink brand Horlicks and other consumer healthcare nutrition brands to Unilever and includes the merger of listed GSK Consumer Healthcare India with Hindustan Unilever. GSK will also sell its 82% stake in GlaxoSmithKline Bangladesh in the deal, which is slated to complete by the end of next year.

Bakers stepped up for long-standing client Unilever on the deal, with a London team led by corporate partner David Scott alongside partners Steve Holmes, Sue McLean and Michelle Blunt, who advised on the IP and tech aspects of the deal, as well as tax partner Alistair Craig.

Indian firm Cyril Amarchand Mangaldas advised Unilever on Indian law, while Slaughter and May, with a team including partners David Johnson, Simon Nicholls and Christian Boney, acted for GSK.

Last year, Bakers advised Unilever on its acquisition of the personal care and homecare brands of Quala, the Latin American consumer goods company, as well as it joint venture with Europe & Asia Commercial Company in Myanmar.

Scott told Legal Business: ‘It was a pleasure to partner again with our great client, Unilever, and our friends at Cyril Amarchand Mangaldas, on this terrific acquisition, including an iconic brand such as Horlicks.’

Meanwhile, Slaughters earlier this year advised repeat client GSK on its $13bn acquisition of Novartis’ 36.5% stake in their consumer healthcare joint venture.

In other news, Pinsents secured a notable win to advise Manchester-headquartered AJ Bell, one of the largest UK investment platform providers, on a proposed listing on the London Stock Exchange which could raise up to £675m.

The price range for the offer has been set at £1.54 to £1.66 per ordinary share, implying a market capitalisation on admission of between £626m and £675m.

Pinsents corporate partner Julian Stanier led the team advising the company, which is also offering customers the opportunity to apply for shares via the AJ Bell website.

Stanier told Legal Business the IPO is slated to be the last big London listing of 2018 after what has been a choppy year for the capital markets.

‘It’s the same with all companies looking to list. If there is a growth story and strong management team, investors will back it, and we are confident that will be the case with AJ Bell.’

Stanier points to the customer offer alongside the institutional offer as being a point of interest.

He added: ‘The quasi-retail element is not the most common, although it has appeared before, such as in Ocado’s 2010 IPO. What’s interesting is that the whole customer offer can be done completely through AJ Bell’s website.’

Shares are due to be admitted on 12 December.

Addleshaws, meanwhile is advising Numis as sponsor, financial adviser, sole bookrunner and broker to AJ Bell on the float, led by partners Giles Distin in London and Richard Lee in Manchester.

The firm pointed to other notable listings it has worked on in the last two years, including the IPOs of Mind Gym, Sumo Digital, The City Pub Company and Ramsdens.

Distin commented: ‘Whilst UK IPO activity has generally been more muted this year, partly due to volatile market conditions and fears around Brexit, several sizeable and successful businesses have managed to complete a flotation. Like Numis, which has remained very active in the IPO market this year, we’re pleased to have been busy throughout 2018 advising on IPOs and other equity capital markets work.’

nathalie.tidman@legalease.co.uk