(Sharecast News) - AIM-listed toilet paper maker Accrol said on Friday that it has agreed to be bought by Portuguese paper firm Navigator in a £127.5m deal.
Under the terms of the offer, Accrol shareholders will receive 38p per share in cash. This is a premium of around 11.8% to the closing share price on Thursday.
Navigator said the offer "presents a compelling opportunity to enter the UK market through the acquisition of a leading UK independent tissue paper converter, with competitive advantages, complementary values and strong alignment to Navigator".
Accrol chief executive Gareth Jenkins said: "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."
Accrol Gp (ACRL)