Last checked at 18 Jan 2024 07:00
18 January 2024
Accrol Group Holdings plc
("Accrol, the "Group" or the "Company")
Acquisition of Severn Delta Limited
Accrol (AIM: ACRL), the UK's leading independent tissue converter, is pleased to announce that the Group has completed the acquisition of Severn Delta Limited ("Severn Delta"), a £5m revenue wet wipe and tumble dryer sheet manufacturer based in Somerset, for an EBITDA multiple of less than 3x before synergies. The acquisition was funded from the Group's existing cash reserves.
Acquisition rationale
The acquisition of Severn Delta demonstrates the Group's ambition to broaden into other household products through strategic and complementary acquisitions which strengthen and extend the existing product offering. Severn Delta brings additional capacity and new capabilities to Accrol's growing wet wipe segment.
Severn Delta currently operates four production lines from its 33,000 sq.ft. facility in Somerset, with three lines manufacturing biodegradable personal care, household, and disinfectant wet wipes, and the other producing tumble dryer sheets.
As a result of the successful acquisition and integration of John Dale in April 2021 and the growth seen in the wet wipes business generally, it is clear the Group can scale the business at pace, utilising Accrol's existing relationships with UK retailers and grocers, as well as benefit from cross-selling to the new key accounts Severn Delta brings.
Gareth Jenkins, Chief Executive Officer of Accrol, said:
"We are pleased to announce the acquisition of Severn Delta and welcome its employees into the Group. Severn Delta enhances our market share in the wet wipe segment and extends our product range, adding further personal care and household wipes. The business currently operates four production lines which we believe can be utilised further to support our customers with their growth and generate a significant return on investment."
For further information, please contact: |
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Accrol Group Holdings plc | |
Dan Wright, Executive Chairman | Via Belvedere Communications |
Gareth Jenkins, Chief Executive Officer | |
Chris Welsh, Chief Financial Officer | |
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Zeus (Nominated Adviser & Broker) |
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Dan Bate / Jordan Warburton | Tel: +44 (0) 161 831 1512 |
Dominic King | Tel: +44 (0) 203 829 5000 |
Shore Capital Stockbrokers (Joint Broker) | Tel: +44 (0) 20 7408 4090 |
Malachy McEntyre/ Mark Percy / James Thomas / Isobel Jones
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Belvedere Communications Limited | |
Cat Valentine | Tel: +44 (0) 7715 769 078 |
Keeley Clarke | Tel: +44 (0) 7967 816 525 |
accrolpr@belvederepr.com |
Overview of Accrol
Accrol Group Holdings plc is a leading tissue converter and supplier of toilet tissues, kitchen rolls, facial tissues, and wet wipes to many of the UK's leading discounters and grocery retailers across the UK. The Group now operates from five manufacturing sites suppling the UK tissue wet wipes market valued at over c£3.0bn at retail sales value.
For more information, please visit www.accrol.co.uk.
Link for Accrol Today video: https://www.accrol.co.uk/our-business/