Potential Summer Merger Deal on the Horizon for Nixon Peabody and Stroock, Reports Say
According to a media report, Nixon Peabody and Stroock & Stroock & Lavan, two US law firms, are currently engaged in discussions regarding a potential merger. The firms aim to make an official announcement about their union during the summer.
The report, sourced from Law.com and based on information provided by individuals familiar with the negotiations, comes in the wake of several team departures from Stroock since the beginning of 2022. Notably, last spring, Stroock experienced the loss of a prominent restructuring group comprising 43 members, who joined Paul Hastings.
The potential merger between Stroock, headquartered in New York, and the larger Nixon Peabody, based in Boston, holds the prospect of forming a combined firm boasting over 800 lawyers and generating revenue in the ballpark of $800 million. Presently, Stroock maintains offices in Los Angeles, Miami, Washington DC, and New York, while Nixon Peabody's presence spans 15 offices, including four international locations in London, Singapore, Hong Kong, and Shanghai.
Both firms declined to confirm the ongoing discussions, although a spokesperson from Stroock acknowledged their priorities, stating that growth is their foremost objective. They emphasised the significance of scale in the legal industry and revealed their regular engagement with individuals, groups, and firms. If a strategic merger or any other arrangement is successfully reached, they assured that they would make an appropriate announcement. However, they refrained from commenting on rumours or speculative information.
According to Law.com, Stroock has engaged in discussions with several firms such as McGuireWoods, Steptoe & Johnson, and Squire Patton Boggs. However, the potential for a deal has been hindered by factors such as Stroock's pension liabilities and the limitations posed by their accruals accounting system.
Following the departure of the team to Paul Hastings, Stroock acknowledged to a news agency that the departing group contributed $80 million (29 per cent) to its 2021 revenue. However, the firm asserted that this team operated independently from other practices and emphasized its confidence in the firm's ability to foster growth.
In a subsequent development, Stroock successfully recruited a group of bankruptcy lawyers from the New York restructuring boutique Luskin, Stern & Eisler in July.
In recent weeks, Stroock has experienced additional departures from its team, resulting in the loss of five intellectual property (IP) litigators to Schulte Roth & Zabel in April. Last week, the firm saw 10 Class Action and regulatory lawyers join Morgan Lewis, and just this week, a group of three private client lawyers, led by practice chair Anita Rosenbloom, departed for McDermott Will & Emery.
A representative from Nixon Peabody provided a comment stating that the firm engages in regular discussions with other law firms on topics related to the legal profession and areas of shared interest. They mentioned that as part of their usual operations, they consider growth opportunities that align with their strategic goals and are in the best interests of their clients.