Firm Advises Insight Venture Partners in Formation of $4.75 Billion Funds

The firm recently advised Insight Venture Partners as sponsor in the formation of Insight Venture Partners IX, L.P., a  private equity fund investing in growth-stage global software, software-enabled services, and Internet businesses, and Insight Venture Partners Growth-Buyout Co-Investment Fund, L.P., a co-investment vehicle that will co-invest with Fund IX in control transactions, with combined commitments of $4.75 billion.

New York-based Insight Venture Partners is a leading global private equity and venture capital firm investing in software, Internet, and data-services companies. Since its founding in 1995, Insight has raised more than $13 billion and made more than 250 investments worldwide.

The deal was handled by partners Gordon Caplan, Adrienne Atkinson, James Brown, Hillel Jacobson and Peter Haller, of counsel Scott Arenare and associates Daniel Mencaroni, Tina Chan, Meredith Levy, Brent Morowitz, Christopher Chan, Steven Messer, Anton Brett, Anne Fox, Jessica Herlihy, and Ross Weinstein. 

Lagardère Travel Retail Agrees to $530 Million Acquisition of Paradies

On August 11, Willkie client Lagardère Travel Retail announced the signing of its $530 million deal to acquire Paradies, an airport travel retail leader in North America, from private equity firm Freeman Spogli & Co, the Paradies family and other shareholders.  The combination of the activities of Lagardère in North America and Paradies is expected to create the second-largest travel retailer in North America, a large and expanding market.

Paradies, a recognized market leader, currently operates through long-term concessions in more than 76 U.S. and Canadian airports, including the top 10 airports: Atlanta, Los Angeles, Chicago, Dallas-Fort Worth, Denver, New York-JFK, San Francisco, Charlotte, Las Vegas and Phoenix. Its nationwide coverage is complementary with that of Lagardère, which has a stronger presence in Canada and a number of international U.S. airports including New York-JFK and Los Angeles.  Sales at the newly combined company are expected to be close to $800 million (€730 million).

The cross-border, multidisciplinary Willkie deal team was led by partners Thomas Cerabino, Annette Péron and Adam Turteltaub, and included partners Eugene Chang, Matthew Freimuth, Mark Holdsworth, Hillel Jacobson and Paul Lombard, of counsel Daniel Backer, special counsel Jonathan Konoff and associates Elizabeth Case, Patrick Horan, Zelda Ferguson, Jacob Kleinman, Dorna Mohaghegh, Carly Glover Saviano, Helen Skinner, Ryan Stott and Edward Torres.

Hudson’s Bay Company Announces Agreement to Acquire Galeria Kaufhof from METRO AG for €2.82 Billion

On June 15, Willkie client Hudson’s Bay Company [TSX: HBC] announced it had entered into a definitive agreement to acquire Galeria Kaufhof, Galeria Inno (Belgian subsidiary) and Sportarena from METRO AG for EUR 2.82 billion.

Under the agreement, Canada-based Hudson’s Bay Company, one of the foremost retail operators in North America and its longest continually operated company will acquire Düsseldorf-based Metro’s department store group GALERIA Kaufhof and its Belgian subsidiary Inno, including the assumption of certain liabilities. The transaction has been approved by the Board of Directors of HBC as well as the Supervisory Board of METRO AG. It is expected to close by the end of the third quarter of 2015.

The transaction is an extension of HBC’s strategy to grow through mergers and acquisitions, and positions the company as a premier international retailer. HBC is taking over 103 GALERIA Kaufhof stores in Germany from METRO GROUP, including 59 properties in prime inner-city locations that are part of the GALERIA Real Estate portfolio. HBC is also acquiring 16 Sportarena stores, 16 GALERIA Inno department stores located in Belgium, as well as various logistics centres, warehouses and other properties, and the long-standing GALERIA Kaufhof head office in Cologne.

As part of the Agreement, HBC will continue to operate GALERIA Kaufhof, Inno and Sportarena under their current brand banners. GALERIA Kaufhof’s existing management team is expected to remain in place following the close of the transaction, and will work closely with HBC’s leadership to explore opportunities to further strengthen GALERIA Kaufhof’s offerings to consumers.

HBC, headquartered in Toronto, is a leading retail operator in North America. Founded in 1670, HBC is North America’s oldest company, and its current portfolio of iconic store banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Saks OFF 5TH and Home Outfitters. With the acquisition of the METRO Group stores, HBC will operate 464 stores under 8 banners, with 44% of sales generated in the United States, 31% in Germany, 23% in Canada and 2% in Belgium.

METRO GROUP, one of the leading international trading companies, it generated sales of about €63 billion in the fiscal year 2013/14. The company operates around 2,200 stores in 30 countries and has a headcount of around 250,000 employees. The performance of METRO GROUP is based on the strength of its sales brands that operate independently in their respective market segments.

Willkie Farr & Gallagher LLP advised HBC on the transaction. The Willkie team was led by Georg Linde (Corporate) and included partners Mario Schmidt, Dr. Axel Wahl, Dr. Stefan Jörgens (all Corporate), Dr. Patrick Meiisel, Dr. Bettina Bokeloh (both Tax), Jan Wilms (Finance), Dr. Christian Rolf (Employment), all Frankfurt; Gordon R Caplan, Greg Astrachan, Russell Leaf (Corporate), David Tarr (Finance), Henry Cohn (Tax), Jonathan Konoff (Competition), all New York; David Tayar (Competition, Paris) and Jean-Quentin de Cuyper (Corporate, Brussels) as well as associates Andreas Feith, Wolfgang Münchow, Dr. Marco Müller, Patrick Wacker, Andreas Knödler, Christina Mann, Dr. Jan-Claudio Muñoz-Gonzales, Johannes Eckhardt, Stefan Bührle (all Corporate), Jörg Walzer (Tax), Jochen Riechwald (Employment), Tobias Daubert (Finance), all Frankfurt; and Michael Jackowitz (Real Estate) and Michael Brandt (Corporate), both in New York.

For additional information, please see the press release here.