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European law firm Fieldfisher has advised Ireland-based electrical products and solutions business Glen Dimplex on sale of its Morphy Richards home appliances brand to Shenzhen Stock Exchange-listed Chinese company Guangdong Xinbao Electrical Appliance Holdings, which trades under the brand Donlim. Donlim currently manufactures and sells Morphy Richards products under licence in China.
Announced in June 2022, the sale has been subject to approval from the Chinese government and has involved extensive negotiations on the terms of the deal. The deal in now complete.
Under the terms of the transaction, Glen Dimplex has retained the rights to the brand in India, Nepal, Bhutan, Bangladesh, Maldives, Sri Lanka, and Israel. It will also have exclusive long term rights to distribute the existing Morphy Richards product range under licence in Ireland, Australia and New Zealand.
Glen Dimplex is a privately owned, Irish headquartered, international group with a 50-year manufacturing heritage. The Morphy Richards brand was acquired by Glen Dimplex founder and Irish industrialist Martin Naughton in the mid-80s. Morphy Richards’ kitchen and home appliances are sold around the world with key markets in China, Ireland, the UK, Australia, and New Zealand.
A cross-practice Fieldfisher team from the UK, Ireland and China led by London corporate partner Jonathan Brooks advised Glen Dimplex on the transaction.
Commenting on the transaction, corporate partner Jonathan Brooks said:
"This sale of an iconic British name to a Chinese buyer is an important strategic move for Glen Dimplex to secure a prosperous future for the internationally-recognised Morphy Richards brand.
"We are pleased to have brought these lengthy negotiations to a successful conclusion for our client."
Referencing Fieldfisher's international capabilities, Dublin corporate partner Feilim O'Caoimh said:
"We are delighted to be able to partner with our Fieldfisher colleagues in the UK and China on this transaction and look forward to further supporting Glen Dimplex as it continues to diversify and grow its business globally."
Commenting on the transaction, Yvonne Burke, Group CFO Glen Dimplex.
We were delighted to have the Fieldfisher team advising on such an important deal for the Group and on other transactions. This deal will further enable Glen Dimplex to deepen our focus in our core growth areas and invest behind electrification of heat and flame in particular, in line with our purpose to help customers to transition to a more sustainable future.
Jonathan was assisted on the deal by corporate associate Dana Eyre in London.
The wider international Fieldfisher team advising Glen Dimplex on the transaction comprised:
Fieldfisher Ireland: Feilim O'Caoimh (Head of Corporate and Commercial).
Fieldfisher UK: Carlton Durrant (Partner, Corporate), Tom Martin (Director, Corporate), Dana Eyre (Associate, Corporate), Nick Currie (Company Secretary, Corporate), Andrew Prowse (Partner, Tax and Structuring), David Bond (Partner, Co-Head of Franchising and Commercial and Head Of Advertising), Vicky Reinhardt (Director, Franchising, Advertising and Commercial), Sonal Patel Oliva (Director, Franchising, Advertising and Commercial), Leighton Cassidy (Partner and Co-Head of IP and Technology, Protection and Enforcement) and Amy Reynolds (Partner, IP and Technology, Protection and Enforcement).
Fieldfisher China: Liang Xing (Partner, Corporate and Dispute Resolution) and Laura Feng (Partner, IP).