KPMG has acted as lead adviser to Ford Motor Company in its successful formation of a joint venture with Russian automobile company Sollers OJSC. The joint venture will manufacture and distribute Ford passenger cars and light commercial vehicles in Russia.
Heather Stevenson, Head of Valuations at KPMG and corporate finance partner, commented:
“This is a major transaction for Ford with Russia predicted to overtake Germany as the largest European market for car and light commercial vehicles by mid decade. This was a huge team effort from KPMG, both in the UK and in Russia, and demonstrates our strong credentials in providing a ‘one stop shop’ of comprehensive specialist transaction advice that our clients require when undertaking complex cross border joint ventures.”
KPMG provided extensive deal advice to Ford on the joint venture including valuation and negotiations support, due diligence, tax and accounting advice and transition advisory on key aspects of the joint venture including operational, financial, IT and accounting.
KPMG’s advisory role for Ford on this joint venture with Sollers follows on from the transaction assistance KPMG has provided to Ford on its sale of Aston Martin, Jaguar Land Rover and Volvo Cars in 2007, 2008 and 2010, respectively.
Kevin Reynolds, Director Business Strategy, Ford Motor Company added: “This is an exciting opportunity for Ford and Russia is a key market for us going forward. As lead financial advisor, KPMG has assisted us in getting to this key milestone in what has been a unique and complex process to create the Ford Sollers Joint Venture.”
Graham Armitage, Transactions Services Partner, commented, "This is an exciting transaction for Ford and KPMG has worked closely with our client both in preparing for the joint venture and in its implementation. BRIC (Brazil, Russia, India and China) offer major growth opportunities and this deal demonstrates KPMG’s extensive expertise in acting as lead adviser in joint venture and other transformational projects in these rapidly developing economies.”
Gavin Combe, Transaction Service Integration Associate Partner added. “This has been a tremendous opportunity to support Ford as it now focuses on the Growth Agenda. KPMG rapidly mobilised the team and quickly became an integral part of the Ford team. We have supported the joint venture transition planning in Russia, Germany and the UK, bringing to bear our extensive knowledge of the Ford operations to drive progress and focus on the key decisions and actions to protect value in the joint venture”
Gary Silberg, Ford Global Lead Partner, commented: “KPMG congratulates Ford in its successful signing of this important joint venture. Our advisory role – both pre and post signing – illustrates KPMG’s expertise in acting as adviser to clients in the automotive sector – following on from KPMG’s role assisting Ford with the sale of Aston Martin, Jaguar Land Rover and Volvo Cars”.
Ends
Notes to editor
For further information please contact:
Sorrelle Cooper, Senior PR Manager: 020 7694 8527 / 07932 078218
sorrelle.cooper@kpmg.co.uk
KPMG Press Office: 020 7694 8773
About KPMG:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
