GSH Group supplies packaging machinery, consumables and printed labels to the fresh produce and food processing industries. The deal came about following a strategic review with GSH deciding to focus on its core machinery business.
Reflex Group CEO Ian Kendall said he was delighted that GSH had opted to partner with Reflex, and the deal would allow both firms to play to their strengths.
“They looked at the best company to partner with to make that transition that was in the best interests of customers and other stakeholders,” he said.
Production is being moved to the Reflex Labels site in Boston, Lincolnshire, where positions are available for GSH employees who wish to relocate.
GSH is based in Peterborough.
Two large presses, an Edale and an MPS model, along with associated ancillary equipment are being moved to the Boston facility, which specialises in labels for the fresh produce and convenience markets.
“We are taking those machines into the business but we can already make the required products on our existing platform,” Kendall explained.
He said Reflex would offer a hybrid option in future, either supplying customers direct or via GSH depending on preference. The deal is expected to add around £3m of business to the group.
The products includes self-adhesive labels and tags for netted products such as oranges and onions.
Reflex Group's financial year ends today (28 February). Kendall said the acquisitive group was on course for sales of £200m, up from £136.2m in 2021/22, and had invested £15m on capex over the past year to improve efficiencies and profitability.
“That has enabled us to mitigate some of the extreme cost rises we have experienced in raw materials, energy and wages,” he added.
“Because of these factors we are expecting a stable profit.”
Reflex has also added a linerless coater to its operation in the Republic of Ireland. “We are the only company making linerless labels in the whole of Ireland,” Kendall stated.
Reflex acquired Macfarlane’s £22m turnover label operation at the end of 2021, so the financial year just ended will include a full year's contribution from that part of the business.
