Under the deal, which completed on 8 October, Reflex has taken on some 90 staff and Labelsco’s 6,400sqm factory in Leicestershire. The business will continue to trade under the Labelsco name.
Labelsco has made losses for a number of years and in its most recent accounts, directors questioned whether the company would be able to continue trading as a going concern.
For Reflex Labels, however, the acquisition brings exposure to markets in which it hopes to grow including pharmaceutical, healthcare, agro-chemical, personal care and household markets.
Reflex director Keven Mitchell told Packaging News: “Labelsco has not been without challenges through the recent recession but in spite of those it has a strong brand in itself and a record of innovation and consistent quality production in very demanding markets.
“This is a testament to the positive attitude and determination of its team; 90 of whom have been retained in the business.
“We look forward to giving Labelsco the stability it needs to grow this business and get it back at the forefront of these markets as the leading light.
“This is an investment in the confidence we have in the quality of the brand, the people who work there and the markets in which it trades.”
Labelsco runs screen and flexo presses and is, according to Reflex, the only label company in the UK to possess all of the ISO9001:2000, BRC/IOP, ISO14001, ISO22000, ISO15378, PS9000 and OHSAS18001 accreditations.
News of the acquisition comes six months after Reflex hit the headlines by signing what is believed to have been the first agreement to buy a Landa nanographic printing press at the Drupa print show.
The business has grown through acquisition since it was founded 10 years ago and, with the acquisition of Labelsco, will have turnover of around £60m.