01/10/2013

Finance Wales wraps up fourth investment for leading packaging company Chevler

The UK’s leading manufacturers of baking cases and tulip muffin wraps is continuing to expand with the backing of a £75,000 loan from Finance Wales.

The loan, which is Finance Wales’ fourth investment in the Hengoed-based company, has enabled it to improve its supply chain to cope with growing demand.

Chevler has invested heavily in innovation as part of its growth strategy in recent years, enabling it to diversify and introduce new product lines.  Earlier this year the company acquired Cardiff-based environmentally friendly food packaging company, Lovely Packaging as part of its diversification drive.

Finance Wales has invested £835,000 in Chevler since its first investment in 2009 - a £525,000 equity investment which funded a buy-out by the current management team.  Two subsequent debt investments in 2010 and 11 backed its continued expansion.

“Being innovative and bringing new products to market has been crucial to our success.  We developed and introduced the muffin wrap which helped increase sales of individual cakes in coffee shops, for instance.  This has helped us become UK market leader and also to increase our presence in Europe and the United States,” explained Managing Director, Stuart Whelan.

“Finance Wales’ long-term backing has been instrumental in helping us build our product range and grow our market share.  Using Finance Wales’ latest investment we’ve been able to reshape our supply chain to maximise our purchasing power.  We’re now supplying customer orders much more quickly.”

Chevler’s range currently includes over six hundred different food packaging products and it can also manufacture individual designs to order.

Today the company has over 220 clients throughout the UK, Europe and the United States, including many of the UK’s largest baked goods manufacturers and retailers.

“Innovation is at the heart of Chevler’s success.  Since they took over the business in 2009, the new management team has had a clear growth strategy which has resulted in the extensive range it now offers.  They’ve also secured numerous new contracts by focusing on developing new products closely targeted at markets with significant potential,” explained Finance Wales Portfolio Executive, Steve Elias.

“Finance Wales is pleased to continue backing Chevler as it implements the latest phase of its expansion plan.  The company now has a comprehensive range of products and our latest investment is helping Chevler optimise its supply chain, improve its procurement processes and purchase the stock it needs to satisfy increased order volumes in a timely and cost effective manner.”

Finance Wales’ investment came from the £150 million Wales JEREMIE Fund.