IW Capital today announces the completion of a £10 million investment round for Transcend Packaging, providing a boost to the company in its goal to reduce consumer and industry reliance on single-use plastic by providing paper-based alternatives.
Transcend Packaging – founded in 2017 – is a leader in sustainable packaging which is targeting the replacement of single-use plastics by making in demand paper and fibre-based alternatives. Transcend utilises state of the art digital printing and specialty coating technology allowing paper straws, cups, and food containers to fully replace their plastic counterparts. Since its founding, the company has seen significant growth and partnerships with leading consumer brands such as McDonald’s, KFC and Starbucks.
This lower mid-market investment from private equity firm IW Capital will be used to accelerate the Company’s expansion plan into new product categories and to capitalise on the significant changes in consumer preferences and legislation. Driven by the increasing realisation of the negative impacts created by single-use plastic, governments around the world have taken action through legislative and regulatory remedies.
With bans on plastic straws and other single-use plastics going into effect in the UK from October 2020 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.
Since its inception, Transcend has been focused on identifying product categories where single-use plastic can be replaced with more sustainable options. Most recently, the Company developed the first PPE face visor with a Plastic Free trust mark from A Plastic Planet. With this investment, Transcend can continue its relentless focus on innovation. The Company plans to recruit more talent and develop additional products to help its high street clients on the path to a more sustainable world.
With changes in consumer preferences, legislation, and the rise of delivery service as an everyday occurrence, the global packaging market is experiencing rapid change. The huge global packaging market is ripe for innovation and disruption particularly in the food and beverage and food service segments.
Lorenzo Angelucci, CEO of Transcend, 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.”
Luke Davis CEO of IW Capital, said: “While some investors have paused activities due to Covid-19, 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 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.”
About Transcend Packaging
Transcend Packaging was established in 2017 to provide sustainable packaging solutions to customers in the food service, food and beverage and health and beauty industries.
The Company has a manufacturing facility in South Wales that began production in 2018 and was the first major producer of paper straws in the UK.