Machado, Meyer, Sendacz e Opice Advogados has advised shareholders in Brazilian textiles manufacturer MMartan Têxtil on the sale of a majority stake in the company to the Brazilian arm of US home furnishing group Springs Global.
Springs Global, which took legal advice from Trindade Sociedade de Advogados, acquired a 65 per cent stake in the company for R$55 million (US$25.3 million).
The deal was completed on 15 April, and Machado Meyer’s Flavio Meyer, says, “The main challenge in this transaction was to negotiate and close it in the middle of the financial crisis and market volatility.”
“We also took a broader role than is usually expected from us, in the sense that our client turned to us at various points for advice they would normally receive from financial advisors, which they did not have,” he adds.
MMartan transferred newly issued and existing shares to Springs Global. Both companies will continue to be managed separately.
In 2007 Springs Global became the first textiles company to go public in Brazil, raising US$327 million in its IPO.
Counsel to MMartan Têxtil
Machado, Meyer, Sendacz e Opice Advogados
Partners Flavio Roberto Penteado Meyer and Tiago Espellet Dockhorn and associates Andre Thiollier, Fábio Wagner and Laura Westin
Counsel to Springs Global Participações
Trindade Sociedade de Advogados
Partners Marcelo Trindade and Pedro Testa
(Latin Lawyer 05.05.2009)