Geldards successfully advise the Development Bank of Wales on £2.2 million investment to tackle UK HGV driver shortages
Geldards have successfully advised the Development Bank of Wales on a £2.2 million strategic investment in Pontypool-based transport logistics business Freight Logistics Solutions (FLS).
The investment by the Development Bank, which includes a mix of equity and loan funding from the Wales Business Fund and Wales Management Succession Fund, will help FLS to develop their unique end-to-end supply chain technology and improve their operational infrastructure.
The deal will drive further growth in the business and will benefit their substantial subcontractor haulage network in the UK and Europe. With access to over 50,000 vehicles FLS are able to offer extensive supply chain options and solutions to businesses at a very challenging time for the sector, with the impact of Covid, Brexit and changes to IR35 resulting in an unprecedented shortage of available drivers.
The Development Bank was advised by Geldards’ Corporate team in Cardiff. Partner Alex Butler was the lead advisor, supported by Ewelina Wagiel and Joga Singh.
Commenting on the deal Alex said: “We were pleased to advise the Development Bank of Wales and its management succession fund on this significant investment in FLS. Recent developments have demonstrated how critical the logistics industry is to the UK economy and this investment demonstrates the Development Bank’s ongoing commitment to supporting businesses in Wales. We wish the FLS team every success for the future”.
Joanna Thomas, Senior Investment Executive at Development Bank of Wales said: “We are grateful to Geldards for their support on this investment. Their commercial and practical approach ensured that we were able to complete the transaction within a relatively short timescale.”