Blackburn-based toilet paper company Accrol set to be acquired in a £127.5m deal

National toilet paper business Accrol Group is set to be acquired by a large Portuguese paper company after a deal worth £127.5m was recommended to shareholders.

Accrol is the UK’s leading independent tissue manufacturer and was established in 1993 by the Hussain family in the Lancashire mill town of Accrington.

The business relocated to Blackburn in 1996 and to its present location in 2004 with a purpose built 65,000 sq ft factory and warehouse.

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Navigator Paper UK Ltd have put in an offer of 38 pence per share to acquire the Lancashire based company which looks to be accepted.

The company is an indirect subsidiary of The Navigator Company, a large Portuguese integrated paper, tissue and packaging company.

Navigator was listed on the Euronext Lisbon Stock Exchange, with a market capitalisation of approximately €2.75 billion as of March 21 March

Speaking to Insider Media, Gareth Jenkins, chief executive of Accrol, said: "Accrol has undergone a period of significant transformation and growth over the last four years, investing in fully automating its tissue converting operations to enhance manufacturing capabilities.

"I am proud and grateful to the efforts and commitment of our people as we have grown to become a leading manufacturer of private label, own branded and licensed tissue products to the UK market."

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Accrol’s board have recommended the acquisition, highlighting how their share price has been generally low since 2018 and being a part of a larger group would allow them to improve margins.

Navigator’s long term strategy says it will focus on building on Accrol's market position and that Accrol will benefit from Navigator's experience in operating similar operations.

They expect the acquisition to result in a turnover of approximately £500 million, with the UK market expected to contribute around 50 per cent. of Navigator’s total tissue turnover.

Gareth said: "Combining with the Navigator Group brings together a highly complementary product offering. 

“It will enable Accrol to benefit from the capabilities, scale, network and resources of Navigator, building on the strategic progress we have made to date."