30 August, 2018
Leading Dorset commercial solicitors Steele Raymond LLP has advised Hong Kong based Challenge Group Limited on the sale of the group’s power transmission business to the international transmission specialist Megadyne S.p.A.
Conceived in 1979, Challenge Group expanded significantly over the last 39 years, supplies over 100 countries and holds over 8,000 lines of transmission products used globally in industries such as manufacturing, mining, energy, food, and construction.
Challenge Group, which has subsidiary businesses in the UK, Ireland, South Africa, Australia and China, will join Megadyne S.p.A’s other global transmission groups.
Challenge Group founder and CEO Bill Cody said: “We are delighted that the sale of Challenge Group has completed and has now joined Megadyne S.p.A global transmission network.”
The transaction was led by Partner and Company Commercial Solicitor Nick Davies, who has extensive experience of international mergers and acquisitions (M&A) and of the manufacturing sector. The team at Steele Raymond provided comprehensive legal advice and assistance on the sale of the Group handling due diligence, advising on all transactional and ancillary documents covering such areas as company law, banking, finance and securities issues, commercial property and employment law matters.
“This was a very interesting multi-jurisdictional transaction which we were very pleased to be asked to act on. Our work involved the usual company law advice but we also played a significant role in coordinating the legal work across all of the relevant jurisdictions. Selling 5 companies located in different jurisdictions simultaneously there was a lot to pull together within the defined timeframe, but we met the deadline set out by the Buyer. We are seeing a lot more non UK buyers on M&A transactions and the team at Steele Raymond are used to dealing with the issues that can crop up with international buyers. We wish Bill, the Challenge team, and Megadyne all the very best in this new chapter of the Challenge story”.
Bill continued: “Steele Raymond’s advice and coordination on this significant international transaction was essential to meet the tight time frames. The team handled all matters expertly and were able to find a path through trickier moments as and when those arose. As a result the process was as smooth as is possible when selling multiple companies at once.”