FRP are pleased to have advised the shareholders of ALS Managed Services on the company’s second management buyout, enabling CEO Phil Tromans and his team to take ownership of the Caerphilly-based recruitment firm with funding from the Development Bank of Wales.
ALS Managed Services is a leading recruitment firm specialising in the UK wide recycling, warehousing, distribution and manufacturing sectors. The business has a blue-chip customer base including major national companies and has grown turnover from £13.3 million to more than £60 million – doubling headcount to around 30 – since the previous management buyout in September 2018.
The transaction was part funded by a £3.75 million equity and debt package from the Development Bank of Wales, drawn from the Wales Management Succession Fund and the £500 million Wales Flexible Investment Fund, which supports Welsh businesses with terms of up to 15 years through loans, mezzanine finance and equity investments from £25,000 to £10 million.
FRP’s Corporate Finance team advised the shareholders on the transaction – preparing marketing materials, running a targeted search process and identifying the right investor to enable an experienced CEO to propel the business through its next phase of growth.
Building on the long-standing relationship between ALS Managed Services and the Development Bank of Wales, they provided commercial advice on offers, structured the transaction including its debt and equity components, led negotiations and managed the deal through to completion within the shareholders’ desired timeframe.
The deal enables Steve Lanigan and Gavin Payne to realise the majority of their shareholding while retaining a stake in the company, ensuring continuity and supporting the leadership transition. Recruitment industry veteran Phil McDonald will take on the role of chair, supporting the management team as the business enters its next phase.
The funding from the Development Bank of Wales provides a strong financial platform for ALS Managed Services to pursue tangible growth opportunities and expand its service offering, building on its established national footprint.
