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EC Design acquires kikki.K
Ashurst has advised EC Design LLC on purchase of Australian stationery retailer Kikki.k Pty Ltd.
Tony Zhang
Firm: Ashurst (EC Design).
Value: Undisclosed.
Deal: International law firm Ashurst acted as legal adviser to EC Design LLC as the purchaser of Kikki.k Pty Ltd (the company).
EC Design LLC operates an online stationery retail business with a small number of retail stores in the US.
Area: M&A.
Key players: Led by partner James Marshall, the Ashurst team comprised partners Anton Harris, Jennie Mansfield, Melanie McKean, Anita Cade and Andrew Deane, with senior associates Chris Barr and Jessica Tuffin along with lawyers Lucinda Blue, Jacqueline King, Kyle McLachlan, John Nielsen, Cindy Yuan, Matthew Parbhu, Caitlin Sandy, Maggie Kearney and Kate Ferguson.
Deal significance: Nearly four months after global boutique Swedish design and stationery brand kikki.K entered voluntary administration, US-based lifestyle products company EC Design, parent company of Erin Condren, acquired the Australian-based brand on 30 July 2020 and plans to shepherd the organisation through a restructuring process to preserve nearly 30 stores and 250 jobs.
“We have long admired kikki.K for its unique design and functional products, and we are thrilled to welcome this incredible team into the EC Design family,” said Tonia Misvaer, CEO of Erin Condren.
“The beautiful Swedish design aesthetic that is signature to the kikki.K brand will remain and will now be more readily accessible to [US] audiences.”
Receivers were appointed over the company by its secured lenders on 10 March 2020 and the company subsequently placed into voluntary administration. 333 Capital commenced a sale process for the company on behalf of the receivers throughout which Ashurst represented EC Design LLC as the successful bidder.
Ashurst then negotiated the deed of company arrangement and the share sale agreement for the sale of the company by the receivers.
The deed of company arrangement became effective on 16 July 2020 with the sale completing on 30 July 2020.
The sale of Kikki.k Pty Ltd reflects the continuing trend in the Australian market of acquisitions of companies under external administration being facilitated through a deed of company arrangement operating alongside a share sale agreement.
