Straw-maker is poised to expand after investment
PAPER straw maker to McDonald’s, Transcend Packaging, has secured a £10m equity investment to support its expansion plans.
The Ystrad Myanch-based business has been backed by private equity firm IW Capital, which will allow it to accelerate its range of paper-based alternatives aimed at reducing single-use plastic.
It uses digital printing and specialty coating technology to produce paper straws cups, and food containers.
Since being set up in 2017, the company has seen significant growth and partnerships with leading consumer brands that also include Starbucks and KFC.
With bans on plastic straws and other single-use plastics coming into effect in the UK from this October and the EU from April 2021, Transcend is well-positioned to help its clients make the transition to paper straws and other sustainable products.
Under currently enacted legislation, over 50 billion plastic straws used in the UK and Europe every year will need to be replaced.
Transcend expects to use the investment to cement its leadership position in the European marketplace.
The company believes that recent events have shown the importance of having locally sourced supply chains that comply with legislation to keep our food and drinks safe.
Luke Davis chief executive of IW Capital, said:“While some investors have paused activities due to Covid19, 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.
“This is an example of the way in which ESG [environmental, social, governance] investment is becoming the right thing to do financially as well as morally. We are incredibly excited to be able to support such a great company with a brilliant management team already in place.”
Lorenzo Angelucci, chief executive of Transcend Packaging, said: “We are proud to have such a strong partner as IW Capital join our team. 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.”
IW Capital would not disclose its ownership stake in Transcend, but said it provided a “strong minority” interest, with a position also on the board.