Navigator launches takeover bid for UK’s Accrol

Portugal’s paper giant Navigator has launched a Public Acquisition Offer for 100% of the British toilet paper, kitchen roll and tissues manufacturer Accrol.

The takeover bid was launched on Friday via its subsidiary in the UK for the company based in Blackburn that makes paper hygiene products under its own brand, and are sold to the main retail chains in the country.

The deal has valued Accrol at £127.5 million (around €148.9 million) according to Navigator in a communiqué aimed at investors and posted on the Portuguese securities commission CMVM.

According to the Portuguese listed company, Accrol’s board — the company is listed on the FTSE in London – is recommending shareholders to accept the offer, a sign that the deal is not a hostile takeover bid.

“Navigator believes that the offer is an attractive opportunity to enter the UK market by acquiring a market leader in kitchen and bathroom tissue paper manufacturing with competitive advantages, complementary values and a strong alignment with Navigator.

Navigator sees Accrol as a “strategic opportunity for the sustained expansion of its tissue business in the Western European market”.

The Portuguese paper manufacturer is offering 38 pence per share, corresponding to a divided of 11.8% on the share price listed at the close of trading on Thursday.

Meanwhile, on Friday’s session Accrol shares shot up to almost equal the price paid by Navigator.