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One month ago, Stroock announced that it was in talks with Pillsbury Winthrop, and the pair had signed a non-exclusive letter of intent to merge. If the proposed tie-up had been successful, it would have brought an international presence to Stroock. Unfortunately, those talks have come to an end, putting Stroock back on the singles market in its time of need.
Pillsbury offered a statement to the American Lawyer on why things didn’t pan out:
“We considered different options, including a combination and a lateral acquisition, but ultimately determined that we could not reach an agreement that adequately balanced Pillsbury’s long-term strategic objectives with the more immediate financial and other risks involved,” a Pillsbury representative said in an email statement Thursday.
The firm added: “We remain impressed with the quality of Stroock’s lawyers and wish them and their professional staff the very best.”
Stroock has this to say about its latest merger failure: “Given our current options, after careful consideration, we also concluded that a Pillsbury-Stroock combination was not the right path for us. Pillsbury is a world-class firm with excellent people, and we wish them and their professional staff the best.”
All of Stroock’s most important financial metrics dropped in 2022 (gross revenue by ~8.8%, revenue per lawyer by ~2%, and profits per equity partner by ~7.5%). On top of its financial losses, the firm has been leaking lawyers like a sieve ever since it broke up with Nixon Peabody. Prior to that, the firm had gone so far as to cut salaries and hours for senior staff members and conduct layoffs among its attorneys and staff. Given this backdrop, the firm does not seem to be in a very good place right now, so hopefully those “options” work out.
Pillsbury Ends Merger Talks With Stroock [American Lawyer]
Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter and Threads or connect with her on LinkedIn.
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