A bid to buy Blackburn-based tissue manufacturer Accrol has been made by a major European player in the sector.
The board of the AIM-listed group has recommended approval of the £127.5m offer by Navigator Paper.
The potential buyer is part of The Navigator Company SA, which is listed on the Euronext Lisbon Stock Exchange. The acquisition would create a business with £500m annual revenues.
The move follows just two months after the sale of Star Tissue, also of Blackburn, to a German-headquartered hygiene group.
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.