Reff and Associates, Fatrom's legal advisor in the sale to DSM Nutritional Products Romania

The combined value of M&A deals advised by the law firm this year amount to 300 million Euro.

 Reff & Associates, the correspondent law firm of Deloitte Romania, advised Fatrom in the sale to DSM Nutritional Products, thus consolidating its M&A portfolio that has reached a combined value of 300 million Euro this year. 

DSM Nutritional Products, one of the world's leading supplier of medicine to the feed, food, pharmaceutical and personal care industries, has recently bought SC Fatrom Aditivi Furajeri SRL, a local leader in production and distribution of feed additive. Worth 7 million Euro, the sale reshapes the market at a moment when agriculture and related sectors are going up the list of development priorities for the Romanian state and the business environment. 

The "business transfer”-type of deal consisted in the sale - purchase of the Fatrom business (with assets, equipments, etc.), namely the production line Ștefanestii de Jos, the clients' portfolio, part of Fatrom's employees, as well as the production equipment and utilities.

"Looking back to the 10 years that have almost gone by since we set up Fatrom, I am glad to say that we had a professional team besides us, that has put sustained efforts into developing and maintaining the company at the top of an ever more competitive market,” said Andrei Soare, former administrator and one of Fatrom's founders. "From this point of view, the sale comes at the right moment. The experience and reputation we have built up, alongside the service quality and skilled staff will prove important assets to the new owner and its future strategy locally and internationally.”

The deal was extremely complex, as Fatrom's activity is subject to special regulations and it thus required interaction with various regulatory authorities. Moreover, the transaction was difficult overall, as it involved balancing the interests of both parties, and negotiations on commercial and legal aspects lasted almost two and a half years. 

Reff & Associates provided legal advice to Fatrom throughout this entire process. The team - led by Leontin Trifa, Associate Partner, and including seniors Silvia Axinescu and Diana Radoi - was involved in drafting, reviewing and negotiating all documents for the client, carrying out formalities and procedures linked to transfer of approvals required for company operations, as well as activities linked to implementing the transfer of employees. 

"Fatrom's takeover was a complex process, a challenge and a great satisfaction at the same time for the team I coordinated,” said Leontin Trifa. "There was great teamwork between the two parties involved and this was a critical factor to the success of the project.”

"I don't believe that 2011 will be a growth year for the M&A market, considering that the distress deals area lacks dynamics, and investors are still cautious. Despite all that, our team has constantly been involved in major deals, including office building sales, joint ventures for commercial centers development, sales of stakes in production activities, acquisitions in the packaging business,” Deloitte Tax & Legal Partner in Charge Alexandru Reff, added.

About Reff & Associates

Reff & Associates is the correspondent law firm of Deloitte Romania, integrated with the Deloitte multi-disciplinary advisory practice and affiliated to a network of law firms and legal departments working with Deloitte all over the world. The professionals working with Reff & Associates have significant experience in high level transactions, in which complex matters are addressed from cross-border and multi-disciplinary perspective. The multi-disciplinary experience of legal professionals allows them to provide, together with other Deloitte professionals, a complete answer to the needs of their clients. They propose state-of-the-art services relying not only on legal and regulatory expertise but also on the use of innovative processes. Their global and systematic approach allows clients to integrate early in their strategy potential legal issues, thus anticipating and preventing legal risks and minimizing the disruption of business operations. 

International recognition:

The continuous and consistent involvement of Reff & Associates in landmark transactions over the last years has increased the firm's visibility and market recognition and has prompted higher rankings in reputable international legal guides. The 2010 edition of Legal 500 Europe, Middle East & Africa ranks Reff & Associates alongside leading law firms, and particularly recommends its lawyers for their expertise in Banking & Finance, Corporate and M&A and Real Estate work. As quoted in the said Legal 500 edition, the clients appreciate Reff & Associates for the "excellent technical advice” and "ability to handle complex work to tight deadlines”. Reff & Associates was also recommended by the legal guide Chambers Europe 2011 for its M&A practice.

Awards and nominations Reff &Associates:

• Award for the most important real estate transaction of the year 2010 - Ziarul Financiar, Lawyers' Gala Awards, 2011
• Nomination for the most important banking transaction of the year 2010 - Ziarul Financiar, Lawyers' Gala Awards, 2011
• Award for the law firm of the year 2010 in real estate - Avocatnet, Avocatnet.ro Gala | 10 years, 2011
• Award for the most important transaction of the year 2010 - Avocatnet, Avocatnet.ro Gala | 10 years, 2011
• Award for the most important real estate transaction of the year 2009 - Ziarul Financiar, Lawyers' Gala Awards, 2010 
• Award for the most important real estate transaction of the year 2009 - Finmedia, Top Lawyers' Gala, 2010