Another major law firm combination appears to be on the way with Troutman Pepper Hamilton Sanders and Locke Lord talking merger.
The combined firm would have more than 1,700 lawyers and generate approximately $1.6 billion in revenue, pushing it into the top 30 US firm list.
The merger would be one of the largest of its kind, ahead of the highly anticipated transatlantic merger between Shearman & Sterling and Allen & Overy, which will create a firm with around $3.5 billion in revenues.
“Our priority is delivering exceptional legal services to our clients,” spokespeople stated in a joint release, indicating that no further comments will be made while discussions are ongoing.
Troutman Pepper was formed following the 2020 merger between Atlanta’s Troutman Sanders and Philadelphia’s Pepper Hamilton, currently fielding a team of 1,100 lawyers who generated $1.08 billion in gross revenue in 2023, maintaining its performance level from the previous year. This placed the firm just outside the top 50 in the American Lawyer rankings.
On the other hand, Locke Lord, which has roots in a 2007 merger between Texas-based Locke Liddell & Sapp and Chicago’s Lord Bissell & Brook, saw a slight decline in revenue to $497.6 million in 2023 from $500.1 million the previous year, according to data from Pirical.
Locke Lord has since expanded, notably with a 2015 merger with Boston’s Edwards Wildman.
Both firms have a similar profitability margin and nearly the same percentage of ranked lawyers and share strengths in banking and finance, corporate, litigation, and real estate, with notable industry focuses in healthcare, life sciences, private equity, and financial services.
The proposed merger would enhance Troutman Pepper’s capabilities in projects, energy, and infrastructure – areas where Locke Lord is particularly strong – and expand its geographical footprint into Texas, a state increasingly popular among major law firms due to the booming energy sector. Locke Lord maintains offices in Austin, Dallas, and Houston.
Troutman Pepper obtain a global presence with Locke Lord’s offices in London and Brussels, complementing its 22 existing U.S. locations.
Increased Law Firm Merger Activity
The merger talks are part of a broader trend of increasing consolidation among U.S. law firms.
According to Fairfax Associates, there were 20 mergers in the first quarter, up from 16 during the same period in 2023 where there were 48 deals, two more than in 2022. Notable among these was the merger between Cleveland’s Ulmer & Berne and St. Louis-based Greensfelder Hemker & Gale.
Mergers are likely to continue as law firms jostle for new partners through larger opportunities and seeking to enhance their position in a competitive environment with technological changes and in a continually changing market.
