Chemical firm was the right formula

Mar 11 2009 by Iain Laing, The Journal

LAW firm Dickinson Dees LLP, has advised on the acquisition of a County Durham chemical firm by the UK arm of a multinational giant for £8.25m.

Frutarom (UK) bought Hartlepool-based Oxford Chemicals to broaden its product offering and customer base. Oxford makes speciality ingredients for the flavour and fragrance industries and is near one of Frutarom’s existing UK sites at Billingham.

The team from Dickinson Dees involved expert lawyers from across the firm and was led by corporate partner Simon Watts, and solicitor Will Bonas.

Mr Watts’ role as lead adviser was to negotiate the central elements of the deal, incorporate the advice and support of specialist lawyers where required and manage the overall progress of the deal.

He said: “Frutarom’s acquisition will undoubtedly create significant opportunities for the combined businesses. They already have a base in Teesside and Frutarom’s further commitment to this region helps to confirm the North East as one of the leading global centres for the chemicals and pharmaceuticals sector.”

Established in 1973 and employing some 70 staff, Oxford was part of the Yule Catto chemicals group and was put up for sale last year. Frutarom was immediately interested.

Mr Watts said: “The deal was complicated by being part of a competitive process. With several bidders for Oxford in the running, there were phases of intense activity as bidders were played off against one another to meet certain requirements. As a result, the completion date was repeatedly adjusted and we worked hard to respond to the demands of a changing timetable.

“However, we are well-experienced with this kind of competitive process and having a broad set of specialist lawyers in the team, each able to work on their own area of the deal in parallel, meant that the pace of our work could be adjusted to fit every stop-start phase of the transaction.”