NK5 closes acquisition of Svenson hair clinic chain

Cuatrecasas advised NK5, leader firm in advising on restructuring and turnaround services, on buying the Svenson hair clinic chain. The firm closed the bid for the production unit of the hair health group, which declared bankruptcy last February, with an offer valued at €10 million. 

The impact of the COVID-19 pandemic on the group’s activity led Svenson to voluntarily apply for bankruptcy after having first declared insolvency. The application was linked to NK5’s offer, which would mean continuity of the business activity, and with which the advisor of restructuring services finally implemented the financial rescue of Svenson by taking control of approximately 95% of the business. 

NK5 formalized the sales contract once the bankruptcy administrator, KPMG, gave the go ahead, leading to it acquire the management of 32 clinics and 320 workers in Svenson España (approximately 90% of the existing workforce). With this acquisition, the firm intends to give the hair health group a boost on the market, backing the business’s organic and inorganic growth, reinforcing its financial structure and supporting the groups’ management team. This is a significant investment aimed at offering Svenson clients the best quality services, promoting long-term relations with its suppliers and strengthening its management and commercial activity.

The project clearly reflects NK5’s capacity to identify companies in financial trouble but that have potential to recover economically and expand their business with the collaboration of their different stakeholders, enabling them to standout once again among their competitors.

The Cuatrecasas team participating in the transaction was made up of Ignacio Escrivá de Romaní and Amador Rodríguez, lawyers from the Corporate and Commercial Practice; Rosa M. Gual and Patricia Álvarez, experts in restructuring, insolvency and special situations; and Rebeca Rodríguez, tax specialist.