(April 5, 2006, London, UK) – Reed Smith, a US-based, top-25 international law firm with nearly 1100 lawyers, and Richards Butler, a London-based, top-30 UK and international law firm with more than 250 lawyers, today announced they have signed a Letter of Intent to combine the firms. Subject to due diligence, negotiation of a merger agreement and votes by both partnerships scheduled in late May, the merger would elevate the combined entity to one of the 20 largest global law firms, with more than 1300 lawyers and offices on three continents.
“Both firms have agreement from their boards to complete due diligence and present the proposed combination for a partner vote,” said Gregory B. Jordan, Reed Smith’s firmwide Managing Partner. “We look forward to working with Richards Butler over the next several weeks in our efforts to combine these two great firms.”
The anticipated combination is aligned with Reed Smith’s well-developed expansion strategy. “Over the past several years, we have grown from a US mid-Atlantic firm to an international firm with offices on the west coast and east coast of the United States and a strong presence in Europe,” said Mr. Jordan. “This growth has been driven by our need to provide expanded capabilities to our clients. The proposed merger creates a powerful litigation and corporate law firm on both sides of the Atlantic, with a significantly strengthened London platform positioning us for further expansion into Europe and the Middle and Far East.”
The overall firm will be known as Reed Smith, although there will be variations in certain markets in Europe using the name Reed Smith Richards Butler, which is the name under which the firm will operate in the UK.
Richards Butler, an 86-year-old internationally recognized firm, advises clients in many industry sectors, from offices in London, Paris, Piraeus and Abu Dhabi. The proposed merger will nearly double the number of lawyers in Reed Smith’s new Paris office and the firm will gain its first offices in the Middle East, in Abu Dhabi and in Greece.
.
“Since over 70% of our work is already cross-border in nature, Richards Butler has been pursuing a long-stated objective of becoming part of one of the world’s leading international law firms,” said Roger Parker, Richard Butler’s Managing Partner. “The proposed merger with Reed Smith offers an excellent opportunity to fulfill that goal. In our discussions to date, we have been greatly impressed with Reed Smith’s people, its economic momentum, and its management vision. The fact that Reed Smith already achieved a successful London merger with Warner Cranston in 2001 demonstrates the enormous synergies that we can realize as a combined firm.”
If the merger is consummated, the combined firm’s London presence will grow to nearly 300 lawyers, with more than 100 lawyers focusing on corporate and finance transactions and another 100 lawyers working in the areas of commercial disputes, arbitration and shipping. The real estate group in London will include 50 lawyers and the combined employment and business immigration practice will be 15 strong. “This expansion will immediately raise the combined firm’s profile in London, making us more attractive to high level laterals and providing us with a broader international capability,” said Tim Foster, Reed Smith’s UK Managing Partner. “It also will further strengthen our reach and presence in the financial services industry, a core area for both firms.”
Under the merger proposal, the new firm will be led by Mr. Jordan as Firmwide Managing Partner, with Roger Parker of Richards Butler joining Reed Smith’s Senior Management Team and taking on the role of European Managing Partner for the merged firm. Office Managing Partners across the expanded firm’s network in London, Paris, Munich, Piraeus and Abu Dhabi will report to Mr. Parker. Tim Foster will continue in his now-expanded role as UK Managing Partner. Both Roger Parker and Paul Johnston, Chairman of Richards Butler, will also join Ian Fagelson as European representatives on an expanded Executive Committee.
According to Mr. Jordan, the proposed merger with Richards Butler brings Reed Smith strong practices in shipping, international trade and commodities and media. “We are excited about expanding these practices throughout the firm and further developing these areas and client relationships,” said Mr. Jordan. “We see great opportunities in these new and expanded practice groups for Reed Smith.”
Subject to the vote of both firms’ partnerships, the integration process will begin immediately thereafter, with the expectation of an official launch of the combined firm on January 1, 2007.
# # #
About Reed Smith
Reed Smith LLP is a top-25 international law firm with nearly 1100 lawyers located in 18 cities worldwide (14 in the U.S. and four in Europe). The firm represents clients ranging from Fortune 100 companies to mid-market and emerging companies. Clients include financial services firms, life sciences companies, health care providers, technology companies and entrepreneurs, power generators and suppliers, manufacturers, real estate companies, universities, and non-profit organizations throughout the world. For more information, visit www.reedsmith.com.
About Richards Butler
Richards Butler is a top 30 City of London law firm advising clients in both developing and emerging markets across four continents. With over 400 partners and staff, and offices in Europe and the Middle East, the firm advises a range of blue chip organizations on complex, cross-border matters in industry sectors as diverse as financial services, insurance, media and film finance, real estate, shipping, and commodities. Its commercial and shipping practices are market leaders and its prominence in emerging sectors such as AIM are widely recognized by independent market commentators.