Adesgo’s Sale of the Seamless Business to Tefron Europe

The deal, which is pending regulatory approval, is expected to close in mid-2023.

Headquartered in Romania, Adesgo is a producer of seamless undergarments, while Tefron Europe is a subsidiary of Israeli company Tefron that is engaged in the development and manufacturing of seamless clothing products.

Musat & Asociatii advised the seller with a team led by partner Monia Dobrescu and managing associate Madalina Trifan, supported by managing associates Alina Man and Simona Anton and senior associate Cristian Cepesi.

Lawyer Monthly had the pleasure to speak with Monia Dobrescu at Musat & Asociatii to give us some further insight into this transaction:

Can you share more details regarding the background of this sale and its purpose?

The sale of Adesgo’s seamless apparel manufacturing, marketing and distribution business to Tefron Europe represents a strategic move for both companies. It has been almost 100 years since the mother company of Adesgo, Rotex, was established, growing throughout the years due to a strong team of dedicated professionals. In the past century, Adesgo has established itself as a strong Romanian brand in its market sector.

The agreement with Tefron ensures continuity to the development of Adesgo, Rotex and the partnerships with the clients. Adesgo will continue to be active in the local Romanian market with its growing Diamond brand, available to leading customer accounts and distributors.

What role did you and your team play in advising Adesgo?

Our team advised Adesgo on all the legal and regulatory aspects of the sale to Tefron Europe, always having in mind the business goals and strategic aspects of our client’s activity. Everybody’s hard work and involvement were essential in ensuring a smooth and efficient outcome.

Our business relationship with Adesgo goes back many years and our reciprocal trust and cooperation played a pivotal role in successfully finalising this transaction. We appreciate the opportunity we were given to work towards achieving the best possible outcome and we are confident that this mandate sets a positive precedent for future business dealings and strengthens our mutual confidence.

How did the Musat & Asociatii team liaise with the involved companies and law firms to ensure the transaction’s success?

As a leading law firm, we have a wide record of working together with international clients and peer law firms on complex mandates; it is part of our daily work. The collaboration with the involved companies and law firms was very efficient and I would like to thank them for all the efforts.

Our business relationship with Adesgo goes back many years and our reciprocal trust and cooperation played a pivotal role in successfully finalising this transaction.

What skills did your team draw upon to overcome the challenges involved in the sale?

Our team is comprised of highly skilled lawyers with expertise in all the aspects of such a mandate. Their attention to detail and great knowledge of the legislation, both local and regional, combined with negotiation skills and business-oriented decisions, were essential in overcoming the challenges of this mandate. Moreover, our strong relationship with the client, which goes back years, made the sale process smooth and efficient.

Would you say that this transaction, and the work that you performed, fits the profile of your firm?

Musat & Asociatii is a leading, full-service Romanian law firm, advising major national and international companies alike, as well as financial institutions and investment funds. A pioneer in the business law industry and one of the first established law firms in the country, the firm traces its history back 30 years.

During these three decades, our firm has built a strong expertise in various areas, especially in complex M&A and real estate transactions. Thus, the mandate to represent Adesgo was a perfect fit for our team of experienced lawyers.

We provide consulting services in all business law areas, including mergers and acquisitions, privatisation, real estate, banking, energy and natural resources, competition, corporate, telecommunications and IT, labour, tax, capital markets, environmental law, litigation, commercial arbitration and criminal law.