Dec 16, 2011: Salans acts on major Russian private equity transaction

PRESS RELEASE

7 December 2011

Salans acts on major Russian Private Equity transaction

International law firm Salans has advised Novomet, one of Russia's largest electrical submersible pump manufacturers, in the sale of shares to a syndicate of three investors, Baring Vostok Capital Partners, Russia Partners and RUSNANO. Novomet will retain a controlling stake in the joint venture.

The transaction is expected to strengthen Novomet’s presence in the foreign oil services markets.

Part of the sale proceeds will be used to expand the production of high-efficiency oil extraction equipment and to modernise existing facilities. Novomet also aims to open new service centres in ten countries.

Salans’ team of lawyers was lead by Moscow M&A and Private Equity Partner Alexei Zakharko, assisted by Moscow Senior Associate Nadezhda Gryazeva, London Partner Paul Salmon and Moscow Associates Vladislav Bromberg and Sergey Shishkin.

Alexei Zakharko, Salans’ M&A and Private Equity Partner in the Moscow office, said: “This is definitely the Private Equity deal of the year on the Russian market for a number of reasons. Both the target and the investors are unique. Novomet is a genuine success story of a Russian manufacturing business founded by scientists, and moving towards becoming international. Baring Vostok, Russia Partners and RUSNANO are major players on the market and we have not seen many examples before of Private Equity co-investment transactions of this size. The two-tier investment structure and the number of investors have resulted in very complicated legal arrangements. This transaction has once again demonstrated our ability to act on complicated Private Equity transactions.”

ENDS

Notes to Editors:

About Novomet

Novomet is a dynamic, innovative enterprise that specialises in producing advanced equipment for mechanised oil extraction and the design and manufacturing of equipment for difficult operating conditions. It was established in 1991.

About Baring Vostok

Baring Vostok specialises in investments in Russia and other CIS countries. Baring Vostok’s long-term investors are US, West European and Asian pension and university funds. Since 1994, Baring Vostok funds have invested more than $1.6 billion in 56 projects, including a number of successful companies in financial services and the oil and gas industry, telecommunications and media, and the consumer sector. The funds currently have $2.2 billion in attracted capital. Baring Vostok has been recognized by readers of Private Equity Online and Private Equity International as “Russian Private Equity Firm of the Year” in 2005, 2006, 2007, 2008, 2009 and 2010.

About Russia Partners

Russia Partners is a pioneer in private equity in Russia and the CIS and has more than $1 billion in investments under management. Since its establishment in 1991, the fund has managed more than 60 investments in Russia and the CIS. Russia Partners is the Russian affiliate of Siguler Guff & Company, a global private equity fund with more than $10 billion in assets and its headquarters in New York.

About RUSNANO

RUSNANO (Russian Corporation of Nanotechnologies) is a joint-stock company created and owned by the Russian government and aimed at commercialising developments in nanotechnology, typically acting as co-investor in nanotechnology projects with significant economic and social potential.

About Salans

• Salans is an international commercial law firm built on a pioneering spirit, with over 750 fee earners and 1,500 staff operating from 22 offices. All are dedicated to delivering fast and effective legal services to the firm’s global client base. 
• Salans regularly receives praise from clients and industry observers around the world. In 2010, The Lawyer magazine awarded Salans the coveted ‘European Law Firm of the Year’ award in its annual European Awards.
• The firm prides itself on its independent and entrepreneurial spirit, combining extensive international capabilities with a focus on the provision of top-level domestic expertise and experience in each jurisdiction in which it operates. Clients get the best of both worlds. 
• Salans has established offices in business and political centres in 17 countries across Western Europe, Central and Eastern Europe, Russia/CIS, North America and Asia.
• The offices are listed here alphabetically: Almaty, Baku, Barcelona, Beijing, Berlin, Bratislava, Brussels, Bucharest, Budapest, Frankfurt, Hong Kong, Istanbul, Kyiv, London, Madrid, Moscow, New York, Paris, Prague, Shanghai, St. Petersburg, Warsaw.

See www.salans.com for further information.  

Salans LLP is a Limited Liability Partnership registered in England and Wales with Registration Number OC 316822.  Regulated by the Solicitors’ Regulation Authority of England and Wales.   A list of the members of Salans LLP and of the non-members who are designated as partners of Salans LLP and/or its affiliated entities is available at its Registered Office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom.