CMS has advised Work Service S.A. on the sale of IT Kontrakt sp. z o.o. to Oaktree Capital Management (UK) LLP, a private equity fund acting together with Cornerstone Partners sp. z o.o. The value of the transaction was just under PLN 147m and Work Service S.A. intends to use the proceeds to finance further development of its core business and strengthen its presence in the CEE region.
A preliminary purchase agreement was executed on 31 March, but the deal required Polish anti-monopoly clearance and the fulfillment of other conditions precedent. Those were met in June 2017 and the deal could eventually close on 30 June.
IT Kontrakt, a company dealing with the outsourcing of IT professionals, had been part of the Work Service Group – the largest provider of comprehensive HR services in CEE – since 2012. Present in 16 markets outside Poland, Work Service Group specialises in personnel consultancy services, HR restructuring, recruitment and staff outsourcing. It is listed on the Warsaw and London Stock Exchanges.
The scope of CMS’s assignment in the transaction included advising on the sale of IT Kontrakt, the deal structure and the fulfillment of conditions precedent.
Evaluating the firm’s contribution to the transaction, Maciej Witucki, CEO of the Work Service Group, commented, "Today, the critical factor for the successful completion of a transaction is not only deep legal knowledge but also an excellent understanding of the relevant business conditions, teamwork and creativity. The CMS team has met all these criteria."
The CMS team included lawyers from the Firm’s Warsaw office: Ireneusz Piecuch, Legal Counsel and Partner, Rafał Kluziak, Advocate and Senior Associate, Jakub Szczygieł, Associate, Karolina Stepaniuk, Associate, and Beata Barwińska, Advocate and Counsel.