New York duo Dewey Ballantine and LeBoeuf Lamb Greene & MacRae have agreed to merge, creating a firm of over 1,300 lawyers, it was announced yesterday (27 August).
The tie-up, which is set to go live in October subject to partner approval, will see the pair combine under the banner Dewey & LeBoeuf.
The merged firm will have revenues approaching $1bn (£496m) and offices in 12 countries in what will be one of the largest mergers ever in the US legal market.
Talks between the two firms began several months ago but picked up pace in the last six weeks, with the firms thrashing out a deal that will see LeBoeuf chairman Steven Davis become chairman of the merged firm and serve a five-year term from 1 January, 2008. It is unclear at present what executive role Dewey’s high-profile co-chair, M&A rainmaker Morton Pierce, will take in the combined firm.
The combined practice will be managed by a 22-partner executive committee, with Dewey and LeBoeuf partners given equal representation on the yet-to-be-finalised management board.
The firm will boast 550 lawyers in New York, as well as 170 lawyers in London, giving it one of the largest City practices of a US-headquartered outfit.
Profitability at the two firms is broadly similar, with LeBoeuf in 2006 achieving average partner profits of $1.43m (£751,000) compared to $1.45m (£729,000) at Dewey, according to figures from Legal Week’s US sister title American Lawyer. LeBoeuf last year grossed $513.7m (£262m), against fee income of $408.2m (£219m) at Dewey.
Both firms said that the main driver behind the deal was a desire to build up their respective practices in Manhattan but that the merger will also give both firms new offices in important European jurisdictions, with Dewey already present in Italy and Germany and LeBoeuf in Paris.
The deal brings together Dewey’s respected M&A practice with LeBoeuf’s traditional strengths in insurance and energy. The latter has also been investing heavily in its London outpost in recent months.
The move follows Dewey’s failed attempt to secure a merger with expansive West Coast law firm Orrick Herrington & Sutcliffe. The merger collapsed in January this year following disputes over how the firm would be managed and partner departures on both sides.
Dewey London head Fred Gander said Dewey had been approached by a number of other firms since the Orrick deal collapsed.
Gander told Legal Week: “After Orrick, we had initially decided to go it alone. However, we realised merging with LeBoeuf was a unique opportunity that was unlikely to repeat itself.”
LeBoeuf London managing partner Peter Sharp commented: “We have sounded out a large number of our partners and we expect the vote will be successful. The deal is a great fit in every respect.
"For example, there is very little overlap in the two firms’ practices in London and it is very exciting for the LeBoeuf side to have capabilities in core markets like Italy and Germany, where we were previously not present."
