A South Wales specialist printing company is preparing for its next phase of growth after completing a management buy-in that will preserve its independence and strengthen its leadership team.
Reel Label Solutions, based in Pontyclun, has secured a £750,000 loan from the Development Bank of Wales to facilitate the restructuring of the management team. Founder Chris Duffin has exited the business, and two senior managers have become shareholders alongside managing director and co-founder Jonathan Wright.
Established in 2001, Reel Label Solutions has grown into a specialist manufacturer of bespoke packaging and self-adhesive labels, supplying customers ranging from start-ups to multinational businesses. Its customers operate across sectors including pharmaceuticals, food and beverage, cosmetics, chemicals, supplements as well as a variety of others.
The company employs almost 30 people and has achieved sustained growth following an earlier management buyout in 2022. The latest transaction represents the third time the Development Bank of Wales has invested in Reel Label Solutions, building on a relationship that began four years ago.
In May 2022, the Development Bank provided £1.2 million in equity and debt funding to support a management buyout. This was followed in 2023 by a further £150,000 loan to invest in new printing equipment, increasing production capacity and helping the company meet growing customer demand.
The latest investment will enable the business to retain its independent ownership structure while bringing additional experience into its shareholder management team.
Jonathan Wright, who helped establish the company 25 years ago, will continue as managing director. He is joined as a shareholder by his son Jacob, who has led the sales function for almost five years, and Jeff Smith, who brings almost three decades of experience in printing and packaging, including more than ten years at Reel Label Solutions.
Together, the management team intends to build on the company’s established reputation for customer service, technical expertise and flexibility.
The transaction also demonstrates the role of succession planning in helping established Welsh businesses retain their independence, protect existing expertise and continue growing under experienced management.
Jonathan Wright said:
“We’ve come a long way since the management buyout in 2022, and I’m proud of what the whole team has achieved. We have some fantastic people here, many of whom have been with us for years, and their experience and commitment have been central to our continued growth.
“Both Jacob and Jeff have played important roles in that success. Jeff brings decades of industry experience and a real understanding of our customers, while Jacob has helped drive the business forward by developing new relationships and opportunities. Bringing them into the ownership of the company is a natural next step and gives us a strong management team to build on what we’ve achieved.
“Remaining 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 longstanding relationships. With the continued support of the Development Bank of Wales, we’re in a strong position to build on our success while staying true to the values that have served us well for the past 25 years and I am very grateful to Chris for all he has done for the business to get us to where we are today.”
Bethan Knight, investment executive at the Development Bank of Wales, said:
“Reel Label Solutions is a great example of a successful Welsh manufacturing business that has continued to grow through investment, strong leadership and a clear commitment to its customers.
“We first supported the business through its management buyout in 2022 and subsequently provided further funding to increase production capacity. Having worked closely with Jonathan and the team over several years, we’ve seen the progress they’ve made and the strength of the business they’ve built.
“Our latest investment is about helping to secure that progress for the long term. By supporting this management buy-in, we’re enabling experienced members of the team to take a stake in the company’s future while preserving its independence and providing continuity for employees and customers.”
The funding for Reel Label Solutions has come from the Development Bank’s Wales Flexible Investment Fund. Financed by Welsh Government, the £500 million fund supports Welsh businesses with terms of up to 15 years. Loans, mezzanine finance, and equity investments are available from £25,000 to £10 million.
