Accrol Group Holdings PLC has agreed to a £127.5 million takeover offer from a subsidiary of Navigator Co SA, the buyer said on Friday.
Accrol Group is a Blackburn, England-based private-label toilet roll manufacturer. Its prospective buyer, Navigator Paper UK Ltd, is a subsidiary of Navigator Co, a large Portuguese integrated pulp, paper, tissue, packaging and biomass energy company.
Accrol shareholders will, under the terms of the offer, be entitled to 38 pence per share. This values Accrol’s entire share capital at around £127.5 million.
Navigator said this consideration represents a premium of about 12% to Accrol’s closing price of 34.0p on Thursday.
Shares in Accrol were trading 12% higher at 38.12p on Friday morning in London.
Navigator, which has a market capitalisation of about €2.73 billion, said Accrol represents ‘a compelling opportunity to enter the UK market’ due to the company’s ‘competitive advantages, complementary values and strong alignment to Navigator’.
Accrol Chief Executive Officer Gareth Jenkins 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.’
Accrol directors, meanwhile, have unanimously recommended that shareholders accept Navigator’s offer. It believes the takeover ‘offers potential to improve margins and benefit from a more stable, integrated supply chain’.
Accrol and Navigator intend for the takeover to be implemented through a court-sanctioned scheme of arrangement. They expect the acquisition to become effective in the second quarter of this year.
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