Zeus Capital has acted as Nominated Adviser and Joint Bookrunner to Accrol Group on the £41.8m acquisition of Leicester Tissue Company (LTC).
Accrol Group, based in Lancashire, is a leading tissue converter and supplier of toilet tissues, kitchen rolls and facial tissues, as well as other tissue products, to major discounters and grocery retailers throughout the UK.
Founded in 2014, LTC is a fast growing, independent tissue conversion business, supplying private label and branded toilet roll and kitchen towel to UK customers, including major supermarket multiples and value retailers.
LTC has delivered a revenue compound annual growth rate of c.70 per cent. between FY17 and FY19. In the unaudited year ended 30 September 2020, LTC generated revenues of £28.0m and adjusted EBITDA of £4.5m.
The acquisition will increase Accrol’s share of the total UK retail tissue market to approximately 16 per cent of the £1.7bn UK industry and consolidate its position in the private label retail tissue market.
Members of the Zeus Capital team included head of PLC advisory Dan Bate, head of corporate broking Dominic King, Jordan Warburton and Kieran Russell, director and associate director of corporate finance respectively. Since 2013, Zeus Capital has acted on over 160 transactions valued in excess of £9.8bn.
Gareth Jenkins, Chief Executive Officer of Accrol Group, said: “The Zeus Capital team has been fantastic to work with in delivering our first acquisition and oversubscribed placing and open offer.
“The acquisition of LTC is fully aligned with our “Brand Killers” growth strategy, adds significant capacity to our existing business and is a major step change that will enable the enlarged organisation to continue to grow ahead of the market.
“We look forward to demonstrating the significant benefits the acquisition will have for the Accrol group.”
Dan Bate, Head of PLC Advisory at Zeus Capital, said: “Congratulations to the Accrol management team on the acquisition of LTC. This transaction is testament to the hard work that management have put into the Group’s turnaround, in building the foundations to enable them to execute their growth strategy.
“This transaction was, as expected, well supported by both existing holders and a number of new blue-chip institutional investors joining the register. We look forward to supporting the enlarged group in its next phase.”
