Industrial Materials Company Acquires 82% Equity Interest in Health Care Adhesives Corporation

A French industrial materials company with a growing U.S. presence was guided by Faegre Drinker through the acquisition of 82% of the equity interests in an American health care tape and adhesives S corporation, with the option to purchase the remainder. To optimize tax benefits, the transaction required an F-reorg prior to closing, prompting Faegre Drinker’s tax colleagues to work closely with the seller’s tax counsel to structure the transaction in the most tax-favorable manner possible. Additionally, Faegre Drinker assisted with the drafting and negotiation of a joint venture agreement with the sellers to govern the management of the health care tape and adhesives company post-closing. Finally, as the ultimate parent of the industrial materials company is a French corporation, we assisted the client with all necessary post-closing filings in connection with a foreign investment in the United States.