Accrol has become the latest company that’s set to leave the London Stock Exchange after receiving a bid from Portuguese paper giant Navigator
Announced this morning, the deal valued Accrol at 38p per share.
Navigator is a pulp, paper, tissue, packaging and biomass-based energy company, with a market capitalisation of £2.34bn. It’s listed on Euronext Lisbon Stock Exchange, ranked seventh in the world in terms of production.
The company decided to enter the tissue market in 2014. This decision led to a series of acquisitions and investments across Europe, and the division’s turnover grew to around £251m a year.
The company said buying Accrol “presents a compelling opportunity to enter the UK market” and would result in a “consolidated turnover of approximately £500m”.
Accrol makes products including Softy facial tissues, Elegance loo roll and Magnum kitchen roll
It launched on AIM through an IPO in 2016 and, according to Navigator, has “undergone substantial transformation” and grown in recent years, with a revenue of £118m.
It added that Accrol’s share price has “generally been weak” since 2018, despite being up by 53 per cent in the last five years, and seven per cent in the last 12 months.
Commenting on the offer, António Redondo, chief of Navigator, said the offer “marks a pivotal moment” as it looks to expand into the UK.
“The proposed acquisition is perfectly aligned with our long-term growth strategy for the tissue business and underscores our unwavering commitment to driving innovation, sustainable growth, and operational excellence at Navigator.”
Gareth Jenkins, chief of Accrol, said the firm “has undergone a period of significant transformation and growth over the last four years, investing in fully automating its tissue converting operations to enhance manufacturing capabilities.”
Jenkins added: “I am proud and grateful to the efforts and commitment of our people. We have grown to become a leading manufacturer of private label, own branded and licensed tissue products to the UK market and have developed broad retail relationships and a robust supply model that enables us to produce great quality and value products.
“Combining with the Navigator Group brings together a highly complementary product offering. It will enable Accrol to benefit from the capabilities, scale, network and resources of Navigator, building on the strategic progress we have made to date.”