From bottle to table: Mallows Bottling trebles production capacity with investment from Development Bank of Wales
Established in 2021 by Directors Andrew Mallows and his 28 year-old son Rhys, the Tonyrefail-based manufacturing business provides contract bottling for leading retailers in the international spirits and soft drink industry. Their 30,000 sq. ft purpose-built bonded facility is accredited with the British Retail Consortium and can fill up to 90 million bottles a year.
Chris Lewis from our Debt Finance team and Cath Golledge from our Corporate & Private Equity team advised Mallows Bottling on securing debt and equity investment from Development Bank of Wales (DBW), helping the manufacturing business to expand their bottling and distribution offering.
The mix of equity and debt funding required by Mallows was integral to their business. In agreeing the loan facility and equity investment with DBW we also had to engage with Mallows’ existing lenders to agree appropriate priority arrangements.
We negotiated the terms of the loan facility, as well as agreeing security documents and a deed of priority with Mallows’ existing lenders.
Our teams worked closely together to deliver a mixed funding offering from DBW, with the investment coming from the £500 million Wales Flexible Investment Fund, financed by Welsh Government and DBW.
The investment will be used to fund the purchase of a new filler that can produce up to 6,000 bottles per hour, creating five high-speed lines. This will allow Mallows Bottling to continue to meet demand and to expand their bottling and distribution offering to the growing UK and international markets.
Rhys Mallows, Managing Director at Mallows Bottling, said:
I just wanted to take the opportunity to thank you for the excellent service you’ve provided to date. You have been so easily accessible and we have not had to chase for responses, also we are pleased with the excellent quality of your work which is obviously based on a good understanding of the issues we have faced.
Chris Lewis, principal associate in the Debt Finance team at Capital Law, said:
Working closely with Mallows Bottling on the investment, has been really exciting. The complexity of the project called for collaboration – that’s why our corporate and debt finance teams came together. We also used our existing relationship with Development Bank of Wales to ensure the transaction completed smoothly.
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