We are pleased to have advised the Development Bank of Wales on a landmark £5 million package for Dragon Recycling Solutions Limited, enabling a management buyout of the Tredegar-based business and safeguarding over 120 skilled jobs.
The £5 million package is a combined investment comprising equity and debt from both the Wales Business Succession Fund and the Wales Flexible Investment Fund.
The transaction marks the first investment completed under the Development Bank of Wales’ new £40 million Wales Business Succession Fund, created to support management buyouts and ensure Welsh ownership and business continuity.
Our Corporate / Commercial and Banking teams played a pivotal role in supporting the Development Bank of Wales throughout the deal.
Greg Williams, Partner in our Corporate / Commercial team, and Rowena Downie, Partner in our Banking team, led the transaction, supported by Matt Detheridge and Tomas Stephens (Corporate and Commercial), Bradley Walker (Banking), and Elinor Corbett-Jones (Employment).
Speaking on the deal, Matt Detheridge, Senior Associate said:
“We are proud to have advised the Development Bank of Wales on such a landmark investment. This deal demonstrates the strength of our Corporate Commercial team in guiding our clients through complex management buyouts, from drafting investment agreements to negotiating share purchase arrangements. Supporting the Development Bank of Wales in delivering the first investment from the Wales Business Succession Fund was particularly rewarding.”
Rowena Downie, added:
“The Banking team was delighted to support the Development Bank of Wales on this transaction, continuing our long-standing relationship. The deal involved a tailored debt investment package to facilitate the management team’s acquisition of Dragon RS. This investment will allow the business to expand sustainably while safeguarding jobs and strengthening the Welsh economy.”
Dragon RS processes around 3 million smart meters annually, operating nationwide contracts with major energy suppliers.
Reflecting on working with our team throughout the deal process, Mark Halliday, Portfolio Development Executive with the Development Bank of Wales said:
“With the support of both the corporate and banking teams at Hugh James, we were able to complete this deal efficiently with excellent due diligence resulting in a smooth transaction.”
