City firms line up on £553m LBO as debt market hints at revival

A trio of City firms have won roles on the largest European leveraged buyout (LBO) so far this year.

Ashurst, Allen & Overy (A&O), Macfarlanes all advised on Charterhouse Capital Partners' £553m LBO of Candover-owned energy consultancy Wood Mackenzie.

Ashurst advised a consortium of senior lenders, including HSBC, Bank of Scotland, Nomura and Lloyds Banking Group, with a team led by London finance partner Mark Vickers, finance partner Doo-Soon Choi and corporate partner David Arnold.

Macfarlanes advised mezzanine lenders AXA, Sankaty and GSC on the deal, with restructuring chief Christopher Lawrence taking the lead role.

Meanwhile, A&O advised longstanding client Charterhouse with a team led by London private equity partner Derek Baird.

Candover began investing in oil and gas research consultancy Wood Mackenzie in 2005 and became a major shareholder in 2007.

US firm Latham & Watkins advised Candover on the sale with a team led by London corporate partner Graeme Sloan, while Dickson Minto advised Candover's management. Goldman Sachs acted as financial adviser.

Commenting on the deal, Vickers said: "This is the largest European LBO this year. Does this herald the resurgence of debt in the LBO market? While this deal is a heavy downpour, of itself it is probably not an indication of a flood of leveraged deals. This is a step in the right direction."