1 June 2016

Forsters advised Greybull Capital on British Steel acquisition and £400 million investment

Forsters' top ranked Corporate team has advised longstanding client Greybull Capital in acquiring the Long Products steel business (renamed as British Steel) from Tata Steel UK, on a deal which completed yesterday.

A team at Forsters' Corporate practice, led by partner Craig Thompson, has advised Greybull Capital on the acquisition of the Long Products steel business (renamed as British Steel) from Tata Steel UK. This hugely significant deal represents a positive step forward for the UK steel industry, and has been critical in securing the employment and future of the 4,700 workers.

Forsters has advised, as part of this deal, on the acquisition of seven steelworks sites in Scunthorpe from Tata Steel UK. Greybull Capital also acquired two mills in Teeside, an engineering workshop in Workington, a design consultancy in York, associated distribution facilities and a mill in northern France. Craig and his team have provided legal advice in relation to up to £400 million investment into the new business, British Steel, comprised of Greybull's investment funds and new bank finance.

For over seven months, Craig Thompson has led a multi-disciplinary team including Alastair Laing and Aaron Morris (Corporate), Victoria Edwards (Banking & Finance), Helen Streeton (Commercial Real Estate) and Rachel Sandham (Employment).  The team worked closely together to advise Greybull Capital on this significant and complex acquisition. 

Craig Thompson, Corporate Partner at Forsters, said: Greybull are a committed investor with a healthy track record of working closely with the businesses and management teams they select to design and implement a responsible yet commercial strategy to create value. They will bring insight and vision to the Long Steel project by taking a long term view and working closely with the excellent management team already in place.

This has been an interesting and rewarding matter for Forsters to advise on and it is exciting to help Greybull with each new investment. We have been able to draw upon our sector experts in corporate, finance and real estate to help Greybull secure a future for British Steel."

Slaughter and May advised Tata Steel UK.

Greybull Capital has a strong track record in advising on the acquisition of UK businesses, such as budget airline Monarch, the convenience stores of WM Morrison and Plessey Semiconductors. In each of these instances Greybull Capital has identified an opportunity to create real value through investing in strong management teams and creating a long term investment strategy.

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