DEALS
Zhong Lun Provides PRC Legal Support to Ferguson on Its USD 1.6 Billion Acquisition of FloWorks
Zhong Lun Provides PRC Legal Support to Ferguson on Its USD 1.6 Billion Acquisition of FloWorks
Recently, Ferguson Enterprises Inc. (“Ferguson”) announced that it has entered into a definitive agreement to acquire FWI Holdings, Inc. (“FloWorks”) from Wynnchurch Capital L.P. The all-cash transaction values FloWorks at an enterprise value of approximately USD 1.6 billion.
In this transaction, Zhong Lun Law Firm acted as PRC legal counsel to Ferguson and provided comprehensive PRC legal services, including PRC legal due diligence, review and revision of transaction documents, PRC regulatory filing analysis and support, and tax assessment support, facilitating the smooth progress of this cross-border acquisition.
The transaction was led by partner Jerry Fang and principally managed by non-equity partner Cathy Chen. The project team also included associates Richard Yuan, Zhaoli Liu, and Yi Dai. In addition, partner Mark Gao and Johann Cao provided support for the tax assessment matters. Associates Rui Long and Jinjian Zhang assisted with the antitrust assessment matters.
Ferguson is one of the largest value-added distributors in North America, focusing on critical water and air solutions for professional customers in the residential and non-residential construction markets. Its business covers plumbing, HVAC, appliances, lighting, pipes, valves and fittings, waterworks, wastewater treatment, and other sectors.
Founded in 1961, FloWorks is a distributor and service provider specializing in highly engineered valves and flow control solutions, with multiple operating locations across North America and Asia. In addition to its U.S. operations, FloWorks has established a valve and automation center in Shanghai, China, providing services and automation solution support to customers in China and across Asia.
The acquisition is expected to further strengthen Ferguson’s value-added service capabilities in the non-residential and industrial end markets, and expand its business presence in pipes, valves, fittings, and flow control solutions.
Leveraging its extensive experience in cross-border mergers and acquisitions, legal due diligence, foreign investment and regulatory filings, and tax assessment, the Zhong Lun project team provided professional, efficient, and practical PRC legal services to the client.
