Accrol acquires wet wipes firm for £3.9m

By Tim Aldred

09 Apr 2021

Blackburn-based tissue products manufacturer Accrol Group has acquired wet wipes firm John Dale for £3.9m.

John Dale's range includes flushable and biodegradable moist toilet wipes, anti-bacterial and anti-viral wipes, facial cleansing wipes, baby and toddler wipes and feminine hygiene wipes.

The Welsh firm manufacturers own branded and private label products for the UK retail market. Though the two already work with several of the same customers, John Dale also brings a number of significant new accounts into the group

The purchase includes the 47,000 sq ft property in Flint from which the business operates, generating around £6m of revenue each year. Accrol now plans to increase production of the anti-bacterial and anti-viral wet wipe ranges.

Dan Wright, executive chairman of Accrol, said: "A move into the attractive wet wipes' segment has been on our radar for some time; as a natural extension of our product range and wholly in line with our growth strategy across the household products category.

"It was essential, however, for us to find a business with a disruptive and environmentally friendly product which we could scale through organic investment. John Dale fits our criteria for growth - quality of product and market positioning, operating excellence in its asset base, and the optimisation of our distribution strengths. It gives Accrol a ready-made platform on which to build a sizeable wet wipes operation and presents an unmissable opportunity for us to compound shareholder value."

Gareth Jenkins, CEO of Accrol added: "John Dale is an excellent business, with three modern wet wipe machines, which are significantly under-utilised.

"The UK wet wipe market is valued at £500m. We are confident that, with our wide customer base, market and operational know-how and a modest investment in additional machine assets, we can scale this business significantly, while generating strong margins, over the next two to three years. The slack within the property and working capital assets of the business will fund much of this growth and accelerate financial returns."

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