Insights
- Navigator Paper UK Limited proposes an all-cash offer to acquire Accrol Group Holdings plc, a leading UK tissue converter, with projected annual sales revenues of £205 million and adjusted EBITDA of £21 million.
- Accrol’s board recommends the offer.
- Navigator aims to bolster its Western European tissue business, focusing on UK private label market growth.
Navigator Paper UK Limited has launched a public all-cash firm offer to acquire the entire issued and to-be-issued share capital of British tissue converter Accrol Group Holdings plc.
Accrol is a leading tissue converter and supplier of toilet tissues, kitchen rolls, facial tissues, and wet wipes to many of the UK’s leading discounters and grocery retailers across the UK. The board of directors of Accrol is recommending the offer, the company said in a press release.
In the half-year ending October 31, 2023, Accrol had sales revenues of £100.3 million (~$126.77 million) and adjusted EBITDA of £10.2 million (~$12.89 million). The company’s board expects annual sales revenues of £205 million (~$259.10 million) and adjusted EBITDA of at least £21 million for the current fiscal year.
Navigator regards Accrol as a critical component of its strategy for long-term expansion of its tissue business in Western Europe. It will concentrate on strengthening Accrol’s position in the UK tissue private label market and promoting growth across all of its core product categories. Increased efficiency and productivity are expected to generate synergies. Navigator expects the acquisition to result in a consolidated turnover of approximately £500 million, with the UK market accounting for roughly 50% of Navigator’s total tissue sales revenues.