On April 14, 2020, CEE Legal Matters reported that Dorda had advised Greiner AG on the takeover of Eurofoam GmbH from Recticel. We reached out to Maximilian Wellner, Head of Group Compliance & Legal at Greiner, to learn more about the takeover.
CEELM: So that our readers have a bit of context, please tell us a few words about Greiner.
Maximilian: Greiner is headquartered in Kremsmunster, Austria, and has four operating divisions: Greiner Packaging, Greiner Bio-One, Greiner Foam, and Greiner Extrusion. Greiner is one of the leading producers of foam and processors of plastics for the packaging, furniture, sport, automotive, medical technology, and pharmaceutical sectors. It is also among the top manufacturers of extrusion lines, tools, and complete profile extrusion plants. In the 2018 financial year, Greiner achieved sales revenues of EUR 1.631 billion and employed a workforce of roughly 10,700 at 140 locations in 33 countries. Grseiner' CEO is Axel Kuhner and its CFO is Hannes Moser.
CEELM: From our earlier reporting, Eurofoam is the result of a joint venture between Greiner and Recticel. What was the rationale behind the joint venture when it was founded in 1992 and what were the considerations behind the current takeover?
Maximilian: The joint venture was established in 1992 as a 50/50 joint venture to form the leading manufacturer of flexible polyurethane foams in Central and Eastern Europe.
Greiner’s motivation for purchasing the remaining shares in Eurofoam is to strengthen its existing foam division and expand its position in the foam business, especially in Central and Eastern Europe.
CEELM: What would you say were the most complex/challenging aspects of this deal and how did you overcome them to get the deal across the finish line?
Maximilian: The international aspect of the deal with many jurisdictions (and law firms) involved and the different legal fields playing together at the same time (M&A, anti-trust, financing, labor law, etc.) was very challenging.
CEELM: How was the legal work split between your in-house legal team and your external legal counsel?
Maximilian: While Dorda prepared and drafted the legal documents, the in-house legal team negotiated the deal and did the organization.
CEELM: And while on the subject, why did you choose Dorda as your advisor on this deal?
Maximilian: Dorda knows Greiner and the target very well and is an expert in all legal fields we needed for this deal.