KATHREIN sells mobile communications antenna and filter business to Ericsson
Frankfurt am Main -Allen & Overy LLP has advised communications technology specialist KATHREIN SE on the sale of its mobile communications antenna and filter business to Swedish telecommunications equipment supplier Ericsson. The closing of the shell purchase agreement already concluded in February, on the basis of which individual asset deals in a number of jurisdictions were linked, took place as planned on October 1, 2019.
The sale is an essential part of a long-term downsizing of the KATHREIN Group. After becoming independent, the remaining subsidiaries will operate under the names KATHREIN Solutions GmbH, KATHREIN Sachsen GmbH, KATHREIN Digital Systems GmbH and KATHREIN Broadcast GmbH. Thus, the restructuring of the KATHREIN Group is largely completed.
Following the announcement of the sale of the mobile antenna and filter business from KATHREIN SE to Ericsson on February 25, 2019, the sale was officially completed with the completion of all regulatory approval procedures on September 30, 2019. Ericsson thus expands its radio system portfolio with a wide range of advanced antenna solutions. Nearly 3,500 KATHREIN employees worldwide will transfer to Ericsson.
The Allen & Overy team, led by restructuring partner Peter Hoegen, advised in particular on the amendment of the financing documentation with a syndicate of banks in Germany and a bilateral bank in Mexico required due to the closing of the transaction. Another focus of activity was the negotiation and conclusion of various collateral release agreements in Germany, Mexico, Romania and the USA.
The Allen & Overy team included partner Peter Hoegen (lead), senior associate Dr. Christopher Kranz, associates Moritz Probst, Evangelina Wiegand and Simon Kirschner (all banking and finance/restructuring, Frankfurt).
Furthermore, KATHREIN was represented by Noerr LLP (Prof. Dr. Christian Pleister, Kenny Koa), Freshfields Bruckhaus Deringer LLP (Dr. Christian Sistermann, Dr. David Beutel, Dr. Martin Rehberg).
Ziems & Partner (Hans-Joachim Ziems, Elmar Geissinger, Stephan Maas, Marcus Mertens) had overall responsibility for the transaction as part of the ongoing restructuring.
The banking consortium was advised by Latham & Watkins LLP (Dr. Jörn Kowalewski, Dr. Daniel Splittgerber, Dr. Ann-Sophie Rosenhagen).
Allen & Overy had already advised Rosenheim-based KATHREIN-Werke KG in 2018 on the conclusion of a restructuring agreement and a restructuring loan agreement. The agreement concluded at the end of March 2018 prepared the ground for a consensual restructuring of the KATHREIN Group, which KATHREIN-Werke KG and its legal successor, KATHREIN SE, had agreed upon with their main financiers. In addition, the Allen & Overy team had also advised KATHREIN SE in 2018/2019 on the sale of KATHREIN Automotive GmbH, a specialist in transmission and reception systems for vehicles based in Hildesheim, to the automotive supplier Continental.