ALS Managed Services

We’re 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.

Our 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, we 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.

Thomas Edwards, Partner at FRP Corporate Finance, said: “ALS Managed Services has built a strong reputation in the recruitment sector, with its experienced leadership team and a clear platform for growth, which makes it an attractive proposition for the right funding partners. This transaction secures continuity for the business while providing the management team with the backing to build on that progress.

“We’re pleased to have supported Steven, Gavin, Phil and the rest of the team through this important milestone, and we look forward to seeing the business continue to thrive in its next phase of growth.”

Steve Lanigan, Shareholder of ALS Managed Services, added: “ALS has achieved impressive growth since 2018, reflecting the strength of the management team. At a time when employers are facing ongoing labour and skills shortages, we want to help clients access the workforce they need to keep operating effectively. So it was important to put a deal in place that would support the team and give the business the right platform for further growth.

“I’m grateful to Thomas and the team at FRP Corporate Finance for their support throughout the process. They understood what we wanted to achieve, communicated clearly at every stage and helped guide us over the line within the desired timeframe.”

The shareholders were also advised by Geldards (legal), with the management team receiving legal advice from Blake Morgan. Capital Law advised the Development Bank of Wales, and SME Finance provided financial due diligence.