Norton Rose Fulbright (NRF) has pulled off its second US merger, this time with New York-based Chadbourne & Parke, giving the Global 100 firm much-needed bench strength in Manhattan and project finance for what will be a $2bn-revenue firm.
The move will add considerable east coast capability to NRF, which the firm has lacked since its combination with Texas firm Fulbright & Jaworski in 2013, and is due to go live in the second quarter of 2017. The majority of Chadbourne lawyers will join NRF’s US business, while London partners are expected to join the Norton Rose Fulbright LLP within the Swiss Verein, which comprises the legacy Norton Rose business.
The deal sees NRF add Chadbourne’s $250m business to its $1.7bn top line. Chadbourne has around 300 lawyers worldwide, while the combined firm will have 1,000 in the US.
In a largely opportunistic move for NRF, it has sealed a deal with a US firm that has struggled to maintain its market position in recent years. Turnover at Chadbourne fell to $250m in 2015 from more than $300m in 2011 and the firm has scaled back its physical presence in Asia completely. Most importantly, the union with Chadbourne will give the global firm significant strength in New York, an area of priority for NRF’s management. Integration is likely to be eased by the fact the pair share the same office block in Manhattan. Chadbourne is centred in New York, with a presence in Washington DC, Los Angeles, Mexico City, São Paulo, Moscow, Istanbul, Dubai and Johannesburg. It also has a small insurance-focused offering in London. The added attraction for NRF would be Chadbourne’s trophy project finance practice, which would complement NRF’s wider focus on energy and infrastructure. NRF global chief executive Peter Martyr told Legal Business: ‘The development of New York and Washington DC is critical to the global business, so the strategic fit is an absolute no-brainer.’
The merger comes four years after NRF first embarked on US expansion with a transformative merger between legacy Norton Rose and Fulbright & Jaworski. But despite the size of the new firm, the merger has failed to fire major growth, with combined turnover remaining largely flat post-merger.
Last month it emerged that legacy Norton Rose partners would get a limited vote on the deal, only confirming the lateral hires of Chadbourne partners based outside the US.
However, one NRF partner commented: ‘I haven’t heard anything negative from anybody. It’s being driven out of the States so it’s all about them really and other member firms will fall in line.’
In the City, NRF is expected to take on Chadbourne’s seven full-time London partners, led by office managing partner Adrian Mecz, with 31 lawyers in total.
The Chadbourne merger is the second in six months for NRF, with the firm’s Canadian arm tying up in late 2016 with 90-lawyer Vancouver outfit Bull, Housser & Tupper.
matthew.field@legalease.co.uk