(Sharecast News) - Tissue converter Accrol has struck an agreement with Unilever to exclusively produce and sell a kitchen towel product under its Lifebuoy brand.
Accrol stated that, following "significant investment" over the last four years, it was now the lowest cost tissue-products manufacturer in the UK - allowing it to deliver the Lifebuoy kitchen towel at a retail price-point positioned between the current market leader and its private label equivalents.
The AIM-listed group added that its licensed business model was expected to generate 10-20% of group revenues in the medium to long-term.
Chief executive Gareth Jenkins said: "Last month, we laid out our strategic plans for the business, which included the expansion of the group's activities into higher margin, third party licensed brands.
"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 of 0920 GMT, Accrol shares were up 6.26% at 32.94p.
Reporting by Iain Gilbert at Sharecast.com
Accrol Gp (ACRL)