A ‘Killer’ approach to growth

By Ged Henderson

05 Feb 2021

Paper products firm Accrols strategy to drive growth has an apt name. The business has christened it Brand Killers.

The aim is simple, to take market share from established brands by delivering best value products to consumers and great service to customers while also ensuring it is the lowest cost operator.

In pursuit of those goals, the Blackburn-headquartered group completed its first acquisition in November a £41.8m deal to buy Leicester Tissue Company (LTC).

The deal, the latest milestone in AIM-listed Accrols turnaround journey, will increase its share of the total UK retail tissue market to around 16 per cent of the £1.7bn industry.

It will also consolidate its position in the private label retail tissue market. The group currently makes products for a host of big-name retailers.

LTC looks a perfect fit. The fast growing, independent tissue conversion business supplies private label and branded toilet rolls and kitchen towels to UK customers, including major supermarket multiples and value retailers.

In the 12 months to September 30, it generated revenues of £28m, a leap of 44 per cent on the previous year, and adjusted EBITDA of £4.5m.

LTC also secured significant contract wins at the end of the 2019 financial year and has a strong pipeline of new opportunities. Its customer portfolio contains one of the UK’s leading supermarket groups and one of the largest value retailers.

Accrol also estimates annualised run rate cost synergies in excess of £1m from procurement and operational efficiencies as a result of the deal.

Zeus Capital acted as nominated adviser and joint bookrunner on the transaction, which included an oversubscribed placing and open offer of around £45m.

Accrol chief executive Gareth Jenkins says: “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.

Executive chairman Dan Wright adds: “We have been very selective about Accrols first acquisition, and LTCs scale and quality demonstrates the ambitions we have for the group.

“Accrol has a highly experienced senior management team with proven and relevant M&A integration skills, which is committed to building a world-class, operationally efficient business of size and scale and delivering substantial shareholder returns through organic and acquisitive growth.

“With around £25m having been invested in the LTC business since its foundation in 2014, it is equipped with top quality machines and has highly capable day-to-day operational leadership, on which we can build.”

Dan Bate, head of PLC advisory at Zeus Capital, says: “The fact that both the placing and the open offer were significantly oversubscribed highlights that investors recognise the outstanding job that the Accrol management team has done in restructuring the business, despite ongoing economic uncertainties.

“The enlarged group now has a huge opportunity to maximise growth over the coming months.

Accrols turnaround journey began in 2017 and has included reorganisation, cost rationalisation, renegotiations with customers and refinancing. In September 2020 the business announced it has almost wiped out its annual losses with a strong year of sales.

  • To read this feature in full and access further Lancashire business news, advice and analysis subscribe to Lancashire Business View magazine or join the LBV Hub from just £2.50 per month. Click here to subscribe now.

Enjoyed this? Read more from Ged Henderson

Latest news

1

Walker Fire accelerates growth with two strategic acquisitions and launch of new digital platform Walker Fire

Walker Fire accelerates growth with two strategic acquisitions and launch of new digital platform

08 Jul 2025

2

10th year of growth for Begbies Traynor Ric Traynor of Begbies Traynor

10th year of growth for Begbies Traynor

08 Jul 2025

3

Iconic Lancaster Inn gets £600K makeover New bar at Toll House Inn at Lancaster

Iconic Lancaster Inn gets £600K makeover

08 Jul 2025

4

FWP completes life-changing youth support project Boat House Youth Centre

FWP completes life-changing youth support project

08 Jul 2025

5

Former footballer scored honorary title Clarke Carlisle

Former footballer scored honorary title

07 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley College University Courses Building, Burnley, BB12 0AN

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

Tri-Site Survey Equipment Showcase
unnamed (2).jpg.jpg
LBV Hub Seminars
09 Jul 2025 - 09 Jul 2025

Tri-Site Survey Equipment Showcase

Crow Wood Hotel, Burnley, BB12 0RT

09:30 - 16:00

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers
Champagne-Jewellery 10 07 25_page-0001.jpg.jpg
LBV Hub Awards
10 Jul 2025 - 10 Jul 2025

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers

Blackburn Cathedral, Blackburn, BB1 5AA

18:00 - 20:30

Choose Chorley for Business - Talent Reimagined Business Breakfast
talentreimaginedbb.png.png
LBV Hub Seminars
10 Jul 2025 - 10 Jul 2025

Choose Chorley for Business - Talent Reimagined Business Breakfast

Strawberry Fields Digital Hub, Chorley, PR71PS

08:00 - 10:30

Shaping Preston's future by remembering its past
1750160034867.png.png
LBV Hub Networking
16 Jul 2025 - 16 Jul 2025

Shaping Preston's future by remembering its past

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin