As specialist printers in the pharmaceutical sector, Reel Label Solutions had been approached in relation to a trade sale but wanted to pursue a shareholder buy-out instead to avoid any potential relocation from South Wales. Based on Cambrian Industrial Estate , the company employs 27 and specialises in high-quality digital labels, in particular short-run production of digital adhesive labels and flexographic label printing.
Managing Director Jonathan Wright explained: “Chris, Paul and I have worked tirelessly over the last 20 years to build the business. We’ve got a very loyal and hardworking team who have played a significant role in helping us to get to where we are today.
“We’ve always been mindful of the need to think long-term about our succession planning. We had the opportunity to proceed with a trade sale but none of us were comfortable with what this might have meant for the team. That’s why we turned to the Development Bank of Wales – we wanted to understand our options and do what was right for us as individuals and the business as a whole. In turn, they’ve structured a deal with a mix of debt and equity that works for all shareholders and creates a sustainable future for the entire team here in Pontyclun.
“Our focus is now on maximising efficiency and developing opportunities in existing and new markets. This is going to require investment in new equipment so the loan from the Development Bank gives us the extra capital required as we focus on growing the business over the coming years.”