Troutman Pepper, Locke Lord Discuss a New $1.5 Billion Firm (2)

Troutman Pepper Hamilton Sanders and Locke Lord are discussing a merger that would place the combined firm among the 30 largest by revenue, boosting the operation’s ability to compete with large rivals.

The firms are discussing “a possible combination,” the two firms said in a statement Thursday. The merger, if a deal is reached, would create a firm of more than 1,600 lawyers and revenue of more than $1.5 billion.

A merger between Troutman and Locke Lord would make sense, as both have strong corporate, litigation and real estate practices, said Raj Nichani, an Atlanta-based legal recruiter and president of the RMN Agency. The practices “dovetail nicely,” he said. “The firms really measure up well together.”

Troutman Pepper, which is the product of a merger of Atlanta and Philadelphia firms, would also gain a presence in Texas, where the energy business has been aiding the growth of Big Law offices. Locke Lord has offices in Houston, Dallas and Austin, according to its website.

The merger discussion is occurring during a period of growing consolidation in the legal industry. Smaller operations are seeking to compete with larger rivals to boost their talent, profits and scope.

“The larger mergers tend to have a ripple effect on the market,” said Howard Cohl, a partner at legal recruiting firm Major Lindsey & Africa. “Merger conversations are continually taking place.” Most of the conversations are happening at firms smaller than those in the Am Law 200, he said.

If a deal is completed, the newly-merged firm would rank among the top 30 largest by revenue, according to rankings by the American Lawyer, which first reported the combination talks. Troutman Pepper by itself ranked 51st in 2023 revenue, while Locke Lord came in at 97th.

Troutman and Locke Lord declined to comment further on the talks. “Our first priority is delivering exceptional legal services to our clients,” they said in their statement.

A merger would be far from unusual for either firm, given their histories.

Troutman Pepper is fresh off of a 2020 merger between Atlanta’s Troutman Sanders and Philadelphia’s Pepper Hamilton. The combined firm brought in $1.07 billion in revenue in 2023, according to figures by the American Lawyer. It has 1,073 lawyers across 22 offices.

Locke Lord was created through the 2007 merger of Texas-founded Locke Liddell & Sapp LLP and Chicago-based Lord Bissell & Brook. Then in 2015, Locke Lord merged with Boston-found Edwards Wildman Palmer to create Locke Lord Edwards.

The combinations helped lead to a firm that brought in roughly $500 million in 2023. Locke Lord equity partners earned $1.17 million that year, according to Am Law figures. The firm had 555 lawyers and 150 equity partners in 2023, according to Am Law.

— With reporting by Sam Skolnik.