Hertha BSC and KKR enter into strategic partnership
With the support of Noerr, Hertha BSC and the investor KKR (Kohlberg Kravis Roberts & Co. L.P. as well as the companies affiliated with KKR) have entered into a strategic partnership. The €61.2m investment will significantly strengthen Hertha‘s financial structure. “The transaction is based on a complex mezzanine funding structure. The important factor was to observe confidentiality in spite of so many parties being involved“, says Professor Dr. Christian C.-W. Pleister, who headed the Noerr team of advisers together with Dr. Dirk Lentfer. “We are glad that we have been able to contribute to the further development of Hertha BSC by establishing and implementing an innovative financial structure at the club’s financial basis” adds Dr. Dirk Lentfer.
The collaboration between Hertha BSC and KKR will facilitate a gradual repayment of the club’s debt and the repurchase of rights. Hertha BSC will thereby substantially improve its cost and earnings situation as well as its balance sheet structure. The agreement between Hertha BSC GmbH & Co. KGaA and KKR provides for a long-term investment and consists of several components, including the purchase of a minority shareholding of 9.7%. The KKR investment is provided through KKR Asset Management (KAM). The envisaged partnership was initiated with the support of IM1872, a European investment company specializing in investments in the area of sports. Together with KKR, IM1872 will accompany Hertha BSC as a partner.
Hertha BSC GmbH & Co. KGaA is a long-standing client of Noerr. Noerr is already an established first-league player in the football sector: when Audi acquired its shareholding in FC Bayern München in 2009, they also relied on the advice of Noerr. Besides, Noerr advised the finance investor KKR on their investment in ProSiebenSat1 Media AG.
Advisors Hertha BSC GmbH & Co. KGaA: Noerr LLP
Prof. Dr. Christian C.-W. Pleister (Corporate, Berlin and Frankfurt), Dr. Dirk Lentfer (Commercial & Real Estate, joint heads), Dr. Kathrin Westermann (Regulatory & Governmental Affairs, Berlin), Dr. Stephan Schulz (Corporate, Frankfurt), Peter Stauber, LL.M. (Regulatory & Governmental Affairs, Berlin)
Associates: Dr. Jan Christoph Funcke (Commercial & Real Estate), Dr. Roland Kühne (Corporate), Hanno Schaper (Regulatory & Governmental Affairs), Alexander Wulff (Corporate, all Berlin)