Accrol acquires Leicester Tissue Company for £42m

Blackburn-based toilet tissues, kitchen rolls and facial tissues converter Accrol has acquired Leicester Tissue Company (LTC) for £41.8m.

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.

In the year ending 30 September 2020, LTC generated revenues of £28m 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.

Gareth Jenkins, chief executive officer of Accrol, said: "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."

Zeus Capital has acted as nominated adviser and joint bookrunner. 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. 

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