Portuguese paper manufacturer, Navigator, has upped its bid for Blackburn-based tissues maker, Accrol Group, in its final offer.
On March 22, it launched its approach for the business with a £127.5m offer which was recommended for approval by the Accrol board.
It said there were strong operational reasons to accept the Navigator offer, such as joining a larger integrated group, with paper and pulp making capacity, that would allow Accrol to continue to improve and maintain margins and win larger wallet share from the largest UK retailers by being an integrated supplier, benefiting from the capabilities, scale, network and resources of the Portuguese business.
Today (May 3), Accrol announced it had received an updated and final offer from Navigator, valuing the business at £130.8m. It implies an enterprise value of approximately £188.2m.
Accrol Group Holdings plc (LON:ACRL) is the UK’s leading independent tissue converter, producing toilet tissue, kitchen towel, facial tissue and biodegradable wet wipes. The UK soft tissue market is worth £1.6bn with private label products comprising circa 50%. Accrol is the leading supplier to the private label market, which is growing at over 8% year on year.
