Accrol Group Holdings PLC (AIM:ACRL) has signed a deal with Unilever PLC (LSE:ULVR) to exclusively produce and sell a kitchen towel product under its Lifebuoy brand.
The company said the exclusive deal was part of its stated strategy to expand into higher margin, third-party licensed brands and the news sent shares up 4.8% to 48.5p on Wednesday in early exchanges.
Accrol said Lifebuoy is the third-most chosen fast-moving consumer goods (FMCG) brand globally and the company believes that, following significant investment over the last four years, it is now the lowest-cost tissue-products manufacturer in the UK.
Chief executive Gareth Jenkins said: “That Unilever has chosen Accrol to bring Lifebuoy kitchen towel to market is testament to the capability of our business and our increasingly strong reputation in the market."
As announced in the strategic review outcomes on 24 January, the group's licensed business model is expected to generate 10% to 20% of group revenue in the medium to long-term.