Greenberg Traurig, has advised Rentokil Initial plc on its joint venture agreement with Haniel & Cie. Holding Company, resulting in a unified provider of workwear and hygiene services in Europe with combined revenues of approximately EUR 1.1 billion. The Dusseldorf-based Glade Michel Wirtz law firm provided counsel to Haniel.
The joint venture, which will be formed through the transfer of the Rentokil Initial businesses into CWS-boco — a company owned by Haniel — brings together Rentokil Initial’s workwear and hygiene businesses in 10 countries principally in the Benelux and Central & Eastern Europe regions, together with Haniel’s businesses in 17 countries. In consideration for the transfer, Rentokil Initial will receive around EUR 520 million in cash and an (approximately) 18% stake in the joint venture, subject to working capital and other adjustments.
The transaction is conditional on European merger clearance and is due to complete in the first half of next year.
According to Greenberg Traurig, "Rentokil Initial is one of the largest business services companies in the world, operating in over 60 countries. The company offers route-based services including pest control, hygiene, and workwear through teams of local experts."
Greenberg Traurig describes Franz Haniel & Cie. GmbH as "a German family equity company which has been headquartered in Duisburg-Ruhrort since it was founded in 1756," and says that "Haniel's portfolio currently includes four business divisions which are independently responsible for their own operating business and which hold a leading market position in their respective sectors: BekaertDeslee, CWS-boco and ELG (wholly owned), [and] TAKKT (majority owned)."
The Greenberg Traurig team was led by Paul Maher and Fiona Adams with support from Warsaw-based Local Partner Daniel Kaczorowski and Associate Anna Chrabota, as well as Henrietta Walker; Sarah Moyles, Robert Carlon, Amy Moore, Declan Grady, Lauren Mitchell, Cate Sharp, Aonghus Heatley, Emma Menzies, Graham Iversen, Gillian Sproul, Simon Harms and Luke Dixon in London; Rob van Eldik in Amsterdam; and Josef Hofschroer; Stefan Lutje, Georg von Wallis, Natalie Hsiao, Laura Zentner, Niklas Conrad, and Carsten Kociok in Berlin.
Editor's Note: After this article was published Schoenherr announced that it had advised Haniel in Austria, the Czech Republic, Poland, and Slovakia. According to Schoenherr, "after acquiring the continental European business from Rentokil Initial in the areas of hygiene, workwear, and cleanroom services, Haniel will hold approximately 82% of the shares, while Rentokil Initial will hold approximately 18%, for which it will receive about EUR 520 million in cash, subject to working capital and other adjustments." The firm's team was led by Partner Florian Kusznier, assisted by Partners Vladimir Cizek, Pawel Halwa, and Sona Hekelova, Attorneys Natalia Rosova, Wojciech Czyzewski, and Peter Devinsky, and Associates Julia Wasserburger and Rudolf Bicek.
Subsequently, CHSH Cerha Hempel Spiegelfeld Hlawati announced that it had advised Rentokil Initial plc on the formation of the joint venture with Franz Haniel & Cie. GmbH , and that the cross-border deal had successfully closed on June 30, 2017. The firm's team was led by Partner Johannes Aehrenthal and included Attorney Jakob Hartig and Associates Stefanie Heimel and Florian Wuunscher in Austria. CHSH's Czech team consisted of Partner Petr Kalis and Associate Jiri Prouza, and the firm's Slovakian team consisted of Partner Jozef Bannert and Associate Veronika Siskova.