Saving the cookie from crumbling
'This was a difficult but extremely rewarding transaction. The dedication and performance of the Cornwall Stodart team was outstanding and I am immensely proud of their efforts.'
'The hard work was worth it in the end. 170 employees remained employed and the iconic Anzac biscuit was saved.'
Gideon Meltzer and Levent Shevki, Partners, Corporate & Commercial
Our client is a private company owned
and controlled by a consortium of private investors and several
Executive Managers formerly employed by a struggling biscuit
manufacturer. The company's ambition was to acquire the business of
the manufacturer to enable continuing trade and long term
The business purchased is the fourth
largest biscuit manufacturer in Australia, with 170 employees and
product lines that are staples within the Australian home,
including the iconic Anzac biscuit.
Shortly after the company went into
voluntary administration, our Mergers & Acquisitions team, led
by Gid Meltzer and Lev Shevki, worked rigorously with multiple
stakeholders to get the deal across the line in order for the
company to recommence operations within the critical timeframe
required for the transaction to be successful.
Our role was not confined to the usual
orchestrating and finalising of the sale and purchase of the
business and assets. It was essential that suppliers, customers and
other key stakeholders were managed to ensure the business had
their support in recommencing its operations. We also drew upon the
experience and expertise of our Reconstruction & Insolvency
team in dealing with the insolvency law issues that arose.
Enhancing their success
Through the extremely hard work and
determination of our Mergers & Acquisitions team, the deal was
finalised within 8 days of the company being put into voluntary
administration. This limited the impact on the business' dedicated
employees, and enabled the business to retain all 170 of its staff
with immediate effect.
The speed at which this deal was
co-ordinated also ensured that the majority of the company's
perishable stock was saved from wastage.
Behind the headlines
The urgent nature of this transaction
required our team to work extremely long hours in the office and
off-site in order to deal with the changing issues that arose and
to bring the deal to a close.
The transaction changed its form on the
eve of the settlement due to certain complexities that arose.
Following intense negotiations with the administrators and an
ensuing proposal (preparation of which lasted well into the early
hours of the morning), our team implemented practical solutions
that enabled the transaction to be completed successfully.
The deal was finalised late in the
evening on Friday 9 March 2012, in time for the business to
recommence production of their famous Anzac biscuits and play its
part in keeping the Anzac tradition alive.