Navigator Paper UK Limited is taking Accrol Group Holdings PLC (AIM:ACRL) off the London Stock Exchange through a £127.5 million takeover.
The offer values each Accrol share at 38p, reflecting an 11.8% premium over yesterday’s closing price, and significant premiums over six-month and twelve-month volume weighted average prices.
The Navigator Company, a major Portuguese integrated pulp, paper, tissue, packaging, and biomass-based energy company listed on the Euronext Lisbon Stock Exchange, hopes to expand its Western European footprint through the takeover.
António Redondo, chief executive of Navigator, said: "The prospective acquisition of Accrol, a renowned tissue manufacturer based in the UK, marks a pivotal moment for Navigator as we expand our commercial footprint to the UK tissue market.
“The proposed acquisition is perfectly aligned with our long-term growth strategy for the tissue business and underscores our unwavering commitment to driving innovation, sustainable growth, and operational excellence at Navigator.
Gareth Jenkins, chief executive Officer of Accrol added: "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. We have grown to become a leading manufacturer of private label, own branded, and licensed tissue products to the UK market and have developed broad retail relationships and a robust supply model that enables us to produce great quality and value products.
“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."