Food packaging manufacturer iPac has secured a £2.2 million investment which will fund the expansion of its production lines and the creation of 42 new jobs.
Gateshead-based iPac, which specializes in food and pharmaceutical packaging, has received the injection of funding from Maven Venture Capital Trusts and the North East Development Capital Fund (NEDCF), backed by the European Regional Development Fund and managed by Maven.
The investment will see iPac increase its production lines from three to 13 within five years and increase the size of its workforce from 51 to 93.
It follows recent news that iPac is investing £730,000 – including £200,000 from the Growth Fund, partly funded by the European Regional Development Fund (ERDF) – to ramp up production of its sustainable iCard product.
The NEDCF first provided funding to iPac in 2019 to help it invest in equipment, including new thermoforming machines. The business has since tripled its revenue to over £10m.
Jonny Catto, Managing Director and Co-Founder of iPac, said, “We are delighted to welcome Maven back to the company as a key funding partner. Maven’s funding program in 2019 was instrumental in driving our growth from £3m to £10m in three years.
“The current funding agreement underpins our continued ambitious growth plans which will allow us to invest in additional thermoforming capacity and site improvements enabling us to further support new and existing customers as we continue the journey of iPac’s exciting growth.”
IPac operates from a 28,000 square foot factory in Gateshead, producing over 300 million units each year, including products for several leading food suppliers.
David Nixon, Chief Investment Officer at Maven, said; “Maven is delighted to continue to support iPac after supporting the team for the first time in 2019. We have been impressed with the growth of the business and its performance. iPac is led by an experienced team that has grown and moved on from companies in this sector, and their latest venture has built a solid reputation in the industry for product innovation, quality, service and environmental responsibility.
“Through a combination of funds managed by Maven, we have structured an investment to support iPac in its next phase of growth, helping the company further develop its operations to enable it to take advantage of positive market conditions.”
Maven was advised on the transaction by Weightmans, Cook and Roebuck, and iPac was advised by Sintons LLP.