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Accrol Group Holdings PLC - toilet roll, kitchen roll and facial tissue products manufacturer - Confirms it expects to operate "normally" throughout England's second national lockdown as it is an essential service provider.
"The business prepared for a second national lockdown and heightened restrictions and is ready to satisfy additional demand, should it materialise," Accrol says.
Separately says it has entered a conditional agreement to acquire LTC Group, a UK-based tissue converter, for an enterprise value of up to GBP41.8 million. This will comprise initial consideration of GBP35.0 million at the deal's completion and up to a further GBP6.8 million deferred consideration due in 2021.
Accrol plans to finance the acquisition and associated costs via a conditional placing of new shares at a price of 44 pence each, to raise GBP38.5 million. Accrol also intends to raise up to a further GBP4.1 million by way of an open offer to shareholders.
"This is a step change for Accrol. LTC adds significant capacity to our existing business, which is already growing ahead of the market, as well as immediately enhancing the earnings of the group. In addition to bringing a wider customer base, it increases the size and scale of the business, enabling greater cost efficiencies and improved market positioning," says Chief Executive Gareth Jenkins.
Current stock price: 44.50 pence
Year-to-date change: up 44%
By Lucy Heming;Â lucyheming@alliancenews.com
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