SSW advises LERG S.A. on the acquisition of CIECH Żywice sp. z o.o.
LERG S.A. is a leading Polish resin manufacturer. Aside from producing and exporting resins, the company also owns its own R&D facilities and cooperates with multiple research centres. The company is growing rapidly and, in the last few years, has established a strong, diversified chemical group with a global presence.
CIECH Żywice is another leading Polish resin manufacturer, with almost a thousand products in its portfolio. The company has a significant presence in foreign markets, with approximately 50% of its sales coming from exports. It also owns a R&D centre. CIECH Żywice was separated from CIECH Sarzyna at the beginning of 2020, as part of the CIECH Group’s strategy to simplify the group structure and focus on growing its main business.
The value of the transaction, based on the purchase price of its shares, is approximately PLN 160 million (EUR 36 million).
The acquisition of CIECH Żywice is an important step towards achieving our strategic objectives, to further strengthen our leading position in resin production, to increase the company’s value, growth potential and safety. Both companies have a rich tradition, vast experience, and a strong market position. They are also complimentary in terms of their product portfolios and technologies. This transaction will create a Polish company able to compete even more effectively on the global resin market. So we are very pleased that, upon closing the transaction, we will welcome CIECH Żywice to the LERG Group – says Agnieszka Kozubek-Bespalenko, Vice-Chairman of the Board and General Manager of LERG.
The transaction will be finalized within a few months, as the parties secure various conditions, including obtaining the consent of the competition regulator.
The transaction required a holistic approach, involving multiple legal practices at SSW. The SSW M&A team was led by dr Paweł Chyb (M&A Practice), partner, the tax team was led by Tomasz Wickel (Tax Practice), partner, the environmental law team was led by Anita Palukiewicz (Environmental Law Practice), partner and the real estate team was led by Maciej Duch (Real Estate Practice), partner.
The project team also included other key members: Adam Pawlisz (M&A Practice), senior associate, Grzegorz Pizoń (Energy and Natural Resources Practice), counsel, Robert Wodzyński (Real Estate Practice), associate, Marcin Gutkowski (M&A Practice), junior associate and Tomasz Pietrzyk (Environmental Law Practice), junior associate.
