Navigator ups OPA price for UK’s Accrol to 39 pence per share
Portugal’s paper manufacturer The Navigator Company has improved on the price for its Public Acquisition Offer (OPA) for Accrol that was announced on March 22 to 39 pence per share.
Accrol, the British company that makes tissue papers for toilet and kitchen rolls, face tissues and wet wipes, is now worth £130.8 million (€152.9 million) compared to the £127.5 million previously.
Under the terms of the increased and final offer, Accrol shareholders will have the right to receive from each Accrol share £0.39 per share.
Navigator had sated in March that it proposed to pay 34 pence for each share in its bid for 100% of Accrol’s capital.
The new offer represents a 14.7% bonus on the original negotiation price (0.34 pence) on the initial offer made on March 21, and 26.4% on the average negotiation price for Accrol over the past 12 months.
“Navigator considers that the financial terms of the increased and final offer are “fair” says the company in a communiqué.
Navigator believes that this acquisition will result in a consolidated business turnover of €500 million with the UK market contributing to around 50% of Navigator’s total business turnover in tissue sales.
Accrol Papers was established in 1993 by the Hussain family in the Lancashire mill town of Accrington with the aim of becoming a leading independent manufacturer of toilet tissue in the UK. The business achieved sales of over £1 million in its first full year of trading. This sales landmark was achieved despite a very small manual production facility and a severe lack of capital funding.
The business relocated to Blackburn in 1996 and to its present location in 2004 with a purpose built 65,000 square foot factory and warehouse and the installation of new state of the art production lines.
This was a major step towards achieving its goal of becoming a leading manufacturer of toilet tissue in the UK. Significant capital investment in subsequent years lead the business to achieve significant growth year-on-year. Accrol concentrated on its principles of manufacturing low cost high quality products using the latest technology available whilst maintaining the highest levels of business ethics and a customer service driven focus.
In 2014, Accrol achieved sales of over £100 million and its current site had grown to over 350,000 square foot factory and warehouse space. Accrol remained in private family ownership until 2014, following which private equity investment was introduced into the business leading to London AIM listing in 2016.
In November 2020, Accrol completed its first major acquisition, buying Leicester Tissue Company (LTC) an independent supplier of private label toilet tissue and kitchen towel. Shortly after in April 2021, Accrol acquired John Dale, a highly scalable, flushable and biodegradable wet wipes business.
Today, the business is the UK’s leading independent tissue converter, producing toilet tissue, kitchen towel, facial tissue, and biodegradable wet wipes.
