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New business for DLS to propel company growth

Posted on 24th June, 2024

Direct Line Supplies appoints Jacksons Law Firm for purchase of Mercurial Properties

A need to increase the warehouse capacity for Direct Line Supplies has seen the company purchase a new business, which could facilitate exponential growth.

Direct Line Supplies purchased Mercurial Properties for an undisclosed sum, in order to take over the warehouse at Lockheed Close, Preston Farm Industrial Estate.

The company will use the facility to increase its buying power of food supplies, which it imports and exports around the globe, while also creating capacity for other businesses to use some of its storage space under a new business name, Linxport.

Direct Line Supplies director Pedram Salahshouri engaged Jacksons Law Firm, which also has a base on Preston Farm Industrial Estate, to complete the purchase of Mercurial Properties and its warehouse.

Pedram Salahshouri, Director of DLS, expressed his gratitude to Jacksons Law Firm for their longstanding partnership and efficient handling of the transaction. “We have been working with Jacksons for over 30 years and have always valued their expertise and dedication,” he said.

“Their deep understanding of our business and history was instrumental in completing this complex acquisition smoothly.”

Founded in 1988 by Abbas Salahshouri, Direct Line Supplies has grown steadily over the decades.

The acquisition of Mercurial Properties marks a significant milestone in the company’s expansion journey.

The new facility, spanning 180,000 square feet, will not only enhance DLS’s own storage capabilities but also enable the establishment of a new business entity, Linxport, which will offer contracted storage space and logistics services to other businesses.

DLS’ new firm Linxport will make use of the freeport bonded warehouse facility it has purchased to store DLS products and supplies – as well as renting out storage, logistics and distribution space to other businesses.

Pedram said: “We now have this 180,000 square foot facility and this will elevate Direct Line Supplies as a business, as well as enabling us to set up Linxport to rent out storage space for other businesses.

“Direct Line Supplies was established in 1988 as a food service company exporting into Europe and the Middle East, as well as importing food and packaging to be redistributed around the UK and abroad, with end users including schools, hospitals, restaurants and fast-food outlets.

“We had outgrown our current, 55,000 square foot site at Teesside Industrial Estate and we were searching for more expansion possibilities within infrastructure and logistics, so when we came across Mercurial Properties’ site we saw how we could maximise the potential of our business.”

Pedram adds the new facility can hold between 15,000 and 20,000 pallets and this means Direct Line Supplies can now bring in more stock and increase its buying power.
Having a bonded warehouse facility will also enable them to “bypass all the supply chain issues that have taken place since Brexit”.

“We will be able to operate as a much leaner business for companies to trade with,” Pedram says.

“We will also be utilising the new property to operate our company Linxport as a secondary customs zone as part of the Teesside Freeport, so we will be holding stock for our own company and other companies too.”

Tony Wentworth, managing partner at Jacksons Law Firm, said: “I have worked with DLS for at least 20 years and I was very pleased that my team was able to support the company with this transaction after seeing it outgrow its existing premises due to its years of success.

“The new premises that they identified was owned by Mercurial Properties and was the sole asset of that company, and so DLS found itself in the position where it had to buy the company in order to acquire the property. This made the acquisition process significantly more involved than if it had simply purchased the property.

“We were happy to be able to support DLS with this purchase, which will enable it to grow its current business at the same time as diversifying its offering.”

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