Legal Business

Clydes, Kennedys and Auntie Beeb latest to back legal apprenticeship drive

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Today (7 March) marks the end of the 7th National Apprenticeship Week, an initiative coordinated by the National Apprenticeship Service, which this year has seen announcements about the launch or expansion of legal training programmes by Clyde & Co, Kennedys, the BBC and Oldham Council.

BBC director-general Tony Hall revealed on 3 March that the broadcaster’s London-based legal department will offer three legal services apprenticeships, with recruitment to start in September 2014.

‘I’m passionate about giving everyone the chance to shine in our industry. That’s why we’re opening up opportunities in new areas of the BBC to the brightest talent from the broadest range of backgrounds,’ Hall said.

Clyde & Co, meanwhile, announced that its Manchester-based personal injury team will take on apprentices, who will follow an 18-month civil litigation learning programme.

‘We understand the need to recognise and recruit talent at a grassroots level and believe that widening access to the legal profession is key to ensuring access to a greater pool of talent,’ said Clyde & Co HR director Charlie Keeling.

Kennedys will also be recruiting a minimum of five more legal apprentices this spring. The chosen school-leavers will begin work in the top 50 UK law firm’s Manchester, Sheffield, Chelmsford and London offices this September. This additional intake follows two initiatives in 2012 and 2013, when ten and seven apprentices were taken on respectively.

Oldham Council will be adding two apprentices to its in-house legal team, with one school leaver to be recruited for the local authority’s property team, and the other to join the civil litigation team.

The new apprentices of all four employers will be pursuing training programmes organised by the Chartered Institute of Legal Executives (CILEx), which this week disclosed that it is part of phase two of the governmental Trailblazer project that will standardise apprenticeships across the legal sector.

ruxandra.lordache@legalease.co.uk

This article first appeared on Lex 100, Legal Business’s sister title

Legal Business

Not everyone is getting hitched – Kennedys and Simpson & Marwick call off agreed merger

Getting a legal merger over the line is notoriously difficult but once the tie-up is agreed it usually goes through, happily or not. One rare exception to that rule has emerged today (11 December) with the announcement that the 153-partner Kennedys has abandoned its agreed takeover of Scots practice Simpson & Marwick.

The deal comes after 18 months of negotiations and a formal announcement of the union in the summer.

The tie-up would have created a £160m practice with strong national coverage in insurance. Today’s announcement cited ‘complex reasons’ as to why the deal had been abandoned.

The combination had originally been scheduled to go live on 1 November but the launch deadline was put back due to integration challenges. The joint statement said: ‘Further to our announcement on 30 August 2013, Kennedys and Simpson & Marwick advise that the two firms no longer intend to merge. Both firms and their partners hold each other in the highest regard and are very disappointed that for complex reasons the merger could not be finalised.

‘Clients and their interests are our priority. There are a number of cross-border clients that Kennedys and Simpson & Marwick plan to continue working closely with in order to provide a UK-wide service.’

Insurance specialist Kennedys was the latest in a line of large English law firms conducting excursions north of the border. This pairing would have created a 220-partner firm and was billed as the most significant Anglo-Scottish tie-up since McGrigors was acquired by Pinsent Masons in 2012.

Simpson & Marwick, which has offices in Aberdeen, Edinburgh, Glasgow, Dundee, Newcastle, North Berwick and London, would have substantially raised Kennedys’ income as senior partner Nick Thomas said that the combined firm would have projected revenues of £160m.

It follows a similar move by Kennedys’ insurance rival DAC Beachcroft via its union with Scots insurance litigation boutique Andersens, which went live in September 2012.

Despite the failure of the talks, the last two years has been a period of sustained consolidation in the national legal market, with Wragge & Co and Lawrence Graham today confirming that they have agreed a merger to go live from May 2014.

Sarah.downey@legalease.co.uk

Legal Business

Latin America pulls in insurance firms as Kennedys launches in Bogota

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Following recent news that insurance specialist Kennedys is to merge with Simpson & Marwick in Scotland, the firm announced on Friday (6 September) that it is to extend its reach into Latin America through an association with Bogota insurance boutique Botero Salazar Tobón & Abogados (BST).

Kennedys now has four associations in Latin America, complementing existing associations in Brazil with Fabio Torres & Associados Advocacia Empresarial in Sao Paulo and Rio de Janeiro, in Chile with Santiago based Acuña & Cia and in Mexico with Bufete Solís Marín.

According to Bernando Salazar, head of BST’s insurance practice, the two firms have worked closely together since 2006. The relationship has deepened since Kennedys launched a Latin America-focused office based out of Miami in 2010, which is headed by partner Alex Guillamont and supported by Colombian qualified associate Andrés Ávila who serves as liaison in Colombian cases.

‘This is a strategically important move for Kennedys and advances our already considerable capabilities across Latin America, said Kennedys senior partner Nick Thomas. ‘To expand our international reach is a big part of our strategy as a firm and Latin America is an area of increasing importance to insurers and reinsurers. We will continue to look for growth predicated on client need and strong market opportunities.’

The scope of insurance work for UK-based international firms in Latin America has continued to pull some of the most established players to the market, notably also outside of Brazil. DAC Beachcroft became the first UK firm to open in Chile earlier this year and has its own alliance in Colombia with De La Torre & Monroy. Clyde & Co has offices in Venezuela and Brazil, as well as contacts throughout the region.

mark.mcateer@legalease.co.uk

Legal Business

Analysis: upheaval in Scots legal market continues as Kennedys takes over Simpson & Marwick

Insurance specialist Kennedys is the latest in line of large English firms conducting raids north of the border over the last year-and-half, sealing a merger with Scotland’s Simpson & Marwick after over a year of negotiations.

The 220-partner firm will be initially be known as Kennedys worldwide and Kennedys Simpson & Marwick in Scotland and is the most significant Anglo-Scottish tie-up since McGrigors was acquired by Pinsent Masons in May 2012.

Both firms have been in talks for around 18 months and Simpson & Marwick managing partner Peter Andersen said the merger was ‘a natural progression from the firms’ collaboration over a number of years’. It follows a similar move made by Kennedys’ international insurance rival DAC Beachcroft through its tie-up with Scottish insurance litigation firm Andersens, which went live in September 2012.

However, the union with Simpson & Marwick, which has offices in Aberdeen, Edinburgh, Glasgow, Dundee, Newcastle, North Berwick and London, should raise Kennedys’ revenues considerably. Senior partner Nick Thomas said that the combined firm would have projected revenues of £160m for the current financial year – the firm is looking at up to 21% growth on top of the £117m it posted for 2012/13, while Simpson & Marwick should add around £25m to the top line. Another £12-15m will come through the addition of aviation boutique Gates & Partners, which merged with Kennedys in June.

‘Peter Anderson and I have known each other for years and when probably 18 months ago we were both thinking about whether it was time to have a UK-wide service available to our clients, then it was natural we would speak to each other,’ said Thomas.

The union is not a full merger – there will be two separate LLPs to ensure the Scots side of the business continues to be regulated by the Scottish Bar with the English portion regulated by the Solicitors Regulation Authority (SRA).

‘We would have gone for a full merger, with fully merged balance sheets, etc, but we had to work out ways of satisfying the Scottish regulatory authorities because they won’t allow legal executives and the like to be partners in law firms,’ said Thomas. ‘We will have two separate LLPS but there will be mechanics whereby we can say to ourselves it is one partnership, one firm and not in any way competing with each other.’

The move by Kennedys comes from an increasing desire from large insurance clients for law firms to offer a seamless service both north and south of the border – a similar motivation cited by DAC Beachcroft behind its move into Scotland last year. However, the Scottish legal market also delivers considerable cost benefits to international firms, something that Ashurst has looked to take advantage of through its ‘northshoring’ move into Glasgow in June. Insurance clients are notoriously cost-conscious and this will have encouraged the expansion of their main legal advisers into lower cost centres.

‘It helps the English firms as well as the Scottish firms to say they can provide clients with a one-stop service, a consistency of service,’ said Thomas. ‘If any insurance company is going to say “I want someone to deal with my motor claims north and south of the border” – it’s always been two different firms who by definition are going to compete a little, whereas here we will be able to deliver services to the client all with the same IT bases, which is hugely important these days when it comes to delivering the legal product.’

Simpson & Marwick becomes the latest Scottish firm to effectively disappear into a larger English counterpart, although it does so from a position of relative strength – it is ranked in the first tier of The Legal 500 for defendant personal injury, professional indemnity and health & safety. Scottish law firms have continued to struggle generally, particularly at the top-end of the market with Dundas & Wilson and Maclay Murray & Spens both recording significant drops in both turnover and profits for 2013. In contrast, two firms focused exclusively on advising leading Scottish clients – Brodies and Burness Paull– continue to show impressive growth.

However Maclays’ chief executive Chris Smylie remains committed to the firm’s UK-wide strategy long-term, arguing that space in the Scottish market is finite.

‘When we started our strategic review in 2012, it was for us a process of redefinition as well as a drive for focus,’ he said. ‘With around a third of our revenue coming from our London office, we consider ourselves a UK national cross-border practice, not a Scots firm with a London office as we are still regarded in some quarters. It is this reputation that we want to build and focus on. While it has worked well for the likes of Brodies and Burness Paull to maintain a Scotland-focused practice, that wouldn’t be the right thing for our clients or our business. So whilst Scotland will remain a core market for us we wouldn’t be looking to increase significantly the relative proportion of our business there.’

For Kennedys, its long-running expansion mode looks set to continue. In addition to the Gates & Partners merger, Kennedys launched in both Ireland and Portugal in 2011, merging with Dublin-based associate firm O’Hare, O’Connor, Walshe in June and associate office Almeida & Athayde in March respectively. It also launched a presence in Brazil through an association with local firm Torres Marcellino & Associados. With insurance clients insisting on better-value delivery from firm, further consolidation is inevitable.

‘There is going to be more growth by merger in our market place and we keep our eyes open for other people who look like us and who will fit in and add to what we already offer to our clients,’ said Thomas.

francesca.fanshawe@legalease.co.uk

Legal Business

Kennedys unveils 9% turnover increase and signals further expansion to its network

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Kennedys has today announced a turnover increase of 9% after a year of both lateral hires and organic growth, with revenues up to £117m from £109m in 2011/12.

The results do not reflect the firm’s recent merger with aviation firm Gates and Partners on 1 June this year, which is expected to add £10m to the City-based insurance specialist’s bottom line.

The top 35 LB100 firm, which has signalled that further expansion is yet to come, has seen consistent growth over the course of the last five years, including posting a 31% increase in turnover in both 2009 and 2010. Last year the firm broke through the £100m boundary, announcing a turnover increase of 11.6% at the end of 2011/12.

Kennedys senior partner Nick Thomas (pictured) said: ‘Kennedys is going from strength to strength despite the challenging economic climate. Our success continues to be predicated on client need and organic growth. The strategy is simple but highly effective: focus on a particular sector and add real value to our clients by combining legal knowledge and industry insight.’

According to Thomas, the firm plans to build on its merger with Gates and Partners by extending its network, commenting: ‘I expect this strategy to lead to further expansion in the coming 12 months as we invest in our network to be in the places our clients need us to be. The merger with Gates and Partners should be seen as a signal of our intent.’

Key hires by the firm over the last year include Clyde & Co marine and offshore energy partner Graeme Baird and Norton Rose marine lawyer David McKie in London, DAC Beachcroft professional indemnity partner Claire Bushen in Manchester, and corporate and commercial partner Peter Cashin, who was brought in to bolster the Hong Kong office from MetLife.

In 2011, Kennedys launched in both Ireland and Portugal, merging with Dublin-based associate firm O’Hare, O’Connor, Walshe in June and associate office Almeida & Athayde in March respectively.

Other UK firms to have recently reported their financial results include SJ Berwin, which saw revenue increase by 2% to £184.6m.

 

francesca.fanshawe@legalease.co.uk

Legal Business

Kennedys seals tie-up with Gates and Partners in aviation sector shake up

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International dispute resolution law firm Kennedys and rated aviation and aerospace outfit Gates and Partners have merged in a move designed to achieve ‘an even greater international platform’ and strengthen their offering to global insurance and reinsurance clients.

The merger, which went live on 1 June, will enable Kennedy’s to offer comprehensive legal support to the aviation sector including corporate and commercial, regulatory and competition, employment, finance, insurance and dispute resolution services. The merger will also give an expanded platform to the already international Gates team, which has offices in London, Brussels, Singapore and Dubai. The merged firm will be known as Kennedys and the new team will operate as Kennedys Aviation.

The merger will take Kennedys’ partner count to 176, with over 1,120 staff members worldwide. The specialist aviation team will comprise over 60 people including 20 partners. Kennedys chief executive officer Guy Stobart told Legal Business that the united firm will aim to build in key geographic locations, focusing firstly on Asia, followed by the US and then South America.

Gates and Partners is listed by the Legal 500 as a tier 2 aviation firm with a ‘solid reputation’ in the market, and said to be ‘among the best’. The firm advised British Airways in relation to a BA38 accident, where an aircraft flying from Beijing to Heathrow landed short of the runway when both engines failed on approach. Key individuals include Neil McGilchrist, who has ‘vast experience’. Saleema Brohi and Paul Freeman are also singled out.

The merged firm will be led by Kennedys senior partner Nick Thomas, while Gates senior partner Sean Gates will retire from the firm this summer.

Thomas said: ‘Our expansion continues to be predicated on client need and organic growth and this merger enables us to do what we do best: dedicate ourselves to a particular sector and add real value by combining legal knowledge and industry insight. This approach has served us well in several other sectors. It’s a powerful combination which adds greater value to our clients’ businesses.’

Gates added: ‘I leave the firm in a tremendously strong position; Gates and Partners has carved out a position as the only international law firm wholly dedicated to the aviation and aerospace sectors and it will now be able to grow further, benefitting from Kennedys international platform, wider legal expertise and its strong sector focus.’

Other recognised leaders in the aviation field include Clyde & Co and Holman Fenwick Willan, Bird & Bird and DLA Piper. Holman Fenwick launched its aviation team in 2011 with the controversial hire of Barlow Lyde & Gilbert’s (BLG) eight-partner rated aviation team, smoothing the path for BLG’s merger with former aviation rival Clyde & Co.

Kennedys is in on-going merger talks with Scottish firm Simpson & Marwick – a move that would give Kennedys its first foothold in Scotland.

jaishree.kalia@legalease.co.uk

Legal Business

Dentons wins spot as Network Rail announces panel revamp

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Network Rail has cut its legal roster from 12 to five core firms in a review that sees newly merged firm Dentons appointed to the panel.

Other firms awarded full service contracts for work in England and Wales are Bond Pearce (Bond Dickinson on 1 May), Eversheds and Addleshaw Goddard. Maclay Murray & Spens has been awarded the contract for Scottish law matters. All four were reappointed from the previous panel.

The firms will provide legal support to Network Rail’s entire business but with a particular focus on corporate projects, commercial contracts, dispute resolution, employment and property work.

Network Rail has also awarded three further contracts for work in specialist areas – to Clifford Chance for treasury and capital markets work; Kennedys for health & safety and regulatory enforcement; and Winckworth Sherwood for public law matters.

As of April 2012 Network Rail had a legal spend of around £15m per year.

Firms not re-appointed to the full panel are Simmons & Simmons, Berrymans Lace Mawer, Bircham Dyson Bell, MacRoberts, Schofield Sweeney and Winckworth Sherwood.

The tender, which was kicked off at a launch presentation in December, was put out to 20 firms, with a further seven unsuccessful.

The rail company’s review of its advisers, led by group general counsel Suzanne Wise, has centred on developing stronger relationships with its advisers and obtaining better value services.

Wise said: ‘This has not been about dissatisfaction with any of the company’s current suppliers. The decision to significantly reduce the size of the panel will drive efficiencies in line with the company’s business objectives. I wanted to develop deeper, more strategic relationships with fewer firms to drive better value and a more integrated approach to our work.’

A statement issued by Network Rail further explained: ‘Network Rail had found its legal spend spread too thinly across a panel of 12 firms making it difficult to develop a close strategic relationship whilst at the same time eroding the company’s ability to gain maximum benefit from the value added offered by many law firms in the market.’

Before joining Network Rail, Wise was general counsel and company secretary of Premier Foods, where she set up the FTSE 100 company’s first formal panel, appointing Eversheds, Slaughter and May and Wragge & Co.

She joined Network Rail in January 2012, with a brief to complete a wholesale review of the strategic objectives of the legal team, including a strategic vision for legal services.

caroline.hill@legalease.co.uk