REG - Accrol Group Hldgs - Acquisition of Severn Delta Limited

Accrol groupAnnouncement

18/01/2024 07:00

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RNS Number : 0735A  Accrol Group Holdings PLC  18 January 2024

 

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:

 Accrol Group Holdings plc
 Dan Wright, Executive Chairman                              Via Belvedere Communications
 Gareth Jenkins, Chief Executive Officer
 Chris Welsh, Chief Financial Officer

 Zeus (Nominated Adviser & Broker)
 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

 Belvedere Communications Limited
 Cat Valentine                                               Tel: +44 (0) 7715 769 078
 Keeley Clarke                                               Tel: +44 (0) 7967 816 525
                                                             accrolpr@belvederepr.com
                                                             (https://url.avanan.click/v2/___mailto:accrolpr@belvederepr.com___.YXAxZTpzaG9yZWNhcDphOm86M2MwYTQzNTFkNjBlNWI1NDY2ZDFlOGIzNGQ3MTQ2NTk6NjplZDQ5Ojk3ZmU0NGJlODE2ZDNiMDY2MTFjZmNmNjcyYWE3MDMwY2YzZWU3MGQxNjlkOGFkMzY3ZmE4NzA1ZGEyNWY4MmU6cDpU)

 

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
(https://url.avanan.click/v2/___http:/www.accrol.co.uk/___.YXAxZTpzaG9yZWNhcDphOm86M2MwYTQzNTFkNjBlNWI1NDY2ZDFlOGIzNGQ3MTQ2NTk6Njo0YzVkOmEwY2Q0OTZhMWE2YTM0NjE1YjlkMjAyNGQ1ZmI2M2FhNjlmZTFkZjE5Mzk5OTdiNjA3Zjk3MzBkMTBmOTU4ZWM6cDpU)
.

 

Link for Accrol Today video: https://www.accrol.co.uk/our-business/
(https://url.avanan.click/v2/___https:/www.accrol.co.uk/our-business/___.YXAxZTpzaG9yZWNhcDphOm86M2MwYTQzNTFkNjBlNWI1NDY2ZDFlOGIzNGQ3MTQ2NTk6NjoxZGMxOmJjYmM3OTRhZjZiZGRhOTUxZmJiZDU4YmUwYmMzYzgxOTBlZDlkMTVkMzkxMDIzMWI0NDNiMTEwZGExMTg1ZDg6cDpU)

 

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