ALS Managed Services completes second MBO with £3.75m development bank funding
Caerphilly-based ALS Managed Services (ALS People) has completed a second management buy‑out, part‑funded by a £3.75m equity and debt package from long-term funding partner the Development Bank of Wales.
Led by Phil Tromans, the deal marks the latest chapter for ALS Managed Services as it further expands its UK-wide managed workforce solutions across the recycling, warehousing, distribution and manufacturing sectors. The company has grown from £13.3m to more than £60m in turnover and doubled headcount since the previous management buy‑out, that was also supported by the Development Bank in September 2018.
A £1M finance package, including funding from the Development Bank of Wales enabled Steve Lanigan and Gavin Payne to buy-out the founding shareholders at that time. The Development Bank took an equity stake that was then bought back by ALS in March 2021.
Recruitment industry veteran, Phil McDonald will take on the role of chair, bringing significant sector experience and strengthening ALS’s governance and strategic capability as the business enters its next phase of growth.
Phil Tromans, chief executive of ALS Managed Services, said: “ALS Managed Services provides fully managed workforce solutions, combining recruitment delivery with on-site operational management, supply chain oversight and compliance governance. The business supports customers with high-volume temporary labour requirements, ensuring continuity of service, workforce stability and full regulatory compliance across multi-site operations.
“The investment strengthens our ability to deliver scalable, compliant and cost-efficient labour models for clients operating in high-volume, operationally complex environments. It gives us the platform to scale what we already do well — delivering reliable, compliant workforce solutions in some of the most operationally demanding sectors in the UK.
“We’ve built a strong track record since the previous buy-out in 2018, and this investment allows us to deepen our partnerships with existing clients while expanding our managed service offering to new customers who are looking for a more structured, accountable approach to labour provision. The Development Bank of Wales has played an important role in supporting the business through each stage of development. The buy‑out gives us stability, continuity and a strong platform to take ALS forward.”
Deputy fund manager Jo Thomas and senior portfolio executive Sam Macalister-Smith from the Development Bank of Wales led on the deal. Jo said: “ALS Managed Services is a strong example of how experienced management teams can drive long‑term growth. Having successfully supported the business through the previous buy‑out, we’re pleased to back Phil and the team as they take ownership and lead the next phase. This is a great example of how we support Welsh businesses through the full cycle of ownership, from succession and MBO’s to long-term growth and reinvestment.”
Steve Lanigan, who led the 2018 buy‑out alongside Gavin Payne, said: “ALS has achieved impressive growth since 2018, reflecting the strength of the management team. Using the Development Bank again to part‑fund this transaction made sense given their understanding of the business and their long‑term support for the management team. We wish all involved every success as they take the business forward into its next chapter.”
Funding for the management buy-out came from the Wales Management Succession Fund and the £500 million Wales Flexible Investment Fund, that supports Welsh businesses with terms of up to 15 years with loans, mezzanine finance, and equity investments from £25,000 to £10M. The £40M Wales Business Succession Fund is part-financed by the Clwyd Pension Fund. Loans and equity investments between £500,000 and £5M are available for management teams seeking to own and run their own business. Terms range from one to seven years.
Advisory firm FRP supported the ALS transaction with Capital Law advising the Development Bank of Wales.