HSBC supports NorthEdge Capital’s backing of Accrol Papers
HSBC’s North West Leverage Finance team has announced the provision of senior debt and working capital facilities to support the financing of Accrol Papers, following on from the recent £66m transaction with NorthEdge Capital.Accrol is one of Europe’s largest independent converters of soft tissue products, with a manufacturing capacity in excess of 80,000 tonnes per annum.
Established in 1993, the business employs 300 staff with a current turnover exceeding £100m and supplies its products to a range of leading retailers and service providers.With the support of NorthEdge and HSBC, Accrol plans to accelerate its expansion programme to increase capacity and drive further growth, job creation and product development. The deal will see HSBC retain the company’s day-to-day banking relationship.
This transaction represents another success for the HSBC North West Leveraged Finance team, following recent private equity transactions including Concept Life Sciences, Innovia Films and Hotter Shoes.Sebastian Lomax, associate director of HSBC Leveraged Finance, said: “HSBC is delighted with the opportunity to finance Accrol Papers, enabling us to support a valued customer of the bank and backing a skilled management team who have overseen significant growth.
"In addition, it strengthens our relationship with NorthEdge, which is an important and active sponsor in the North, and marks our second deal with the firm having recently funded its investment in Fine Industries.”Majid Hussain, CEO of Accrol, said: “I was impressed by HSBC's speed and flexibility in reaching an acceptable lending decision. The facilities will ensure that we are able to bring forward our expansion plans.”
Dan Wright, partner at NorthEdge Capital, said: “HSBC reacted with decisive speed and commercial flexibility in supporting our investment into Accrol Papers, quickly recognising the qualities of the business, not least the dynamic management team led by Majid Hussain. "HSBC’s funding support enables Accrol to accelerate its investment plans in line with the strategy mapped out by management and NorthEdge. We are delighted to welcome HSBC and its Northern team as a long-term funding partner for Accrol as we seek to further develop the strengths of the business.”