Transcend Packaging has received a £10 million investment in a fund raising round to speed growth for the south Wales business.
The company was at the forefront of fast food companies shifting from plastic to paper straws and during the pandemic has shifted to become a key supplier of PPE to NHS Wales. It has to the capacity to produce 2 million visors and masks a week, each meeting CE standards and being exported, as well as delivering to UK government and care homes.
The design also has an eye to the future. “Frontline services are of course a priority right now, but in the months to come, once restrictions are lifted and businesses resume their operations, other people will require protection. We wanted to create a product that could be used across the population,” says Transcend CEO Lorenzo Angelucci.
The new money has come from IW Capital and will accelerate growth to take advantage of growing interest in fibre based packaging rather than plastic. The company has been a leader in printing cartons on HP Indigo presses as well as litho, using recyclable materials rather than single use plastics.
The business is in position to take advantage when plastic straws and other single use plastics are outlawed in the UK from October this year and from April next across the EU. Current consumption is around 50 billion plastic straws a year across the UK and Europe. And it is well placed to benefit from post pandemic changes to source packaging from local providers rather than ship packaging from across the globe and the environmental impact that entails.
“We believe this validates the path we set upon in 2017 to build a global leader in sustainable packaging. We have a long path ahead of us, but with our new partner, we are sure to have the support we need build our vision,” says Angelucci. “We are proud to have such a strong partner as IW Capital join our team.”
In turn IW Capital CEO Luke Davis explains that despite Covid-19, the appeal of companies like Transcend remains. He says: “The underlying quality of businesses and investment opportunities will always be the most important thing. This is exactly what we have seen with Transcend; we had huge demand from our investor base to support a business with such a clear growth trajectory that is also helping to combat environmental issues moving forward.”