Welsh label maker completes management buyout with £750,000 loan

Nation.Cymru staff

A Welsh label printer has secured a £750,000 loan to bring two senior managers into the business as shareholders.

Reel Label Solutions, which employs nearly 30 people in Pontyclun, completed the management buyout with backing from the Development Bank of Wales.

Co-founder Chris Duffin has left the business, while fellow co-founder Jonathan Wright will stay on as managing director.

The new shareholders are Wright’s son Jacob, who has led sales for nearly five years, and Jeff Smith, who has worked at the company for more than a decade and has almost 30 years’ experience in printing and packaging.

Founded in 2001, the company makes self-adhesive labels and bespoke packaging for customers ranging from start-ups to multinationals. It supplies businesses in sectors including pharmaceuticals, food and drink, cosmetics, chemicals and supplements.

Jonathan Wright said: “Staying independent is particularly important to us. It means we can make decisions quickly, respond to our customers’ needs and maintain the personal service that has helped us develop so many long-standing relationships.”

He said Smith brought industry experience and knowledge of the company’s customers, while Jacob had helped the business develop new relationships and opportunities. He also thanked Duffin for his contribution over the past 25 years.

The deal is the third time the Development Bank of Wales has backed the company. It provided £1.2 million in equity and debt for a previous management buyout in May 2022, then lent the business £150,000 in 2023 to buy new printing equipment and increase production capacity.

Bethan Knight, an investment officer at the bank, said the latest deal would give experienced managers a stake in the business while providing continuity for staff and customers.

The loan came from the £500 million Wales Flexible Investment Fund, which is financed by the Welsh Government and offers loans and other forms of investment of between £25,000 and £10 million.