Direct Line Supplies to expand warehousing space with acquisition

Direct Line Supplies has snapped up a Stockton-on-Tees based business in order to significantly expand its warehouse capacity. Jacksons Law Firm advised on the deal.

The company, founded in 1988 by Abbas Salahshouri, has purchased Mercurial Properties, enabling it to take over its warehouse at Lockheed Close on Preston Farm Industrial Estate.

The new facility spans 180,000 sq ft and will be used to increase Direct Line Supplies’ buying power of food supplies, which it imports and exports around the world.

It will also be creating capacity for other businesses to use some of its storage space under a new business name Linxport.

Linxport will make use of the freeport bonded warehouse facility and rent out storage, logistics and distribution space.

Pedram Salahshouri, director of Direct Line Supplies, said: “We have been working with Jacksons for over 30 years and have always valued their expertise and dedication.

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

Salahshouri added: “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.”

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.”

CPNE advised Mercurial Properties on the sale.