A Portuguese paper manufacturer Navigator is to take over Lancashire-based Accrol Group valuing the business at approximately £127.5 million.
The deal appears to be the culmination of a transformation plan that started when Accrol went public in 2016, growing organically and through three acquisitions since 2020.
But Accrol’s share price has been weak since late 2018, with the significant turnaround in the business not resulting in a sustained recovery.
“As previously announced, Accrol has experienced strong financial and operational performance throughout the recent past, delivering profit upgrades and improving margins but when coupled with broader economic and political uncertainty, the wider AIM market has suffered significant challenges and has as yet not resulted in a strong upward trend of the share price,” the board said.
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.