Blackburn-based toilet tissue manufacturer Accrol began trading on London’s AIM market today after raising £63.5m from institutional investors.
Accrol placed 63.5m shares worth 100p with investors giving it a market capitalisation of £93m.
The shares were up on their debut today – opening at 104.5p and rising to 110.8p by late afternoon.
Accrol, which was bought by UK private equity house NorthEdge Capital for £66m in 2014, will use the proceeds to repay all shareholder loan notes and refinance existing debt.
NorthEdge has retained a 15% stake in the business after the float.
Accrol stated: “The directors believe that admission will provide the business with an increased reputation and profile and the ability to incentivise key employees, as well as providing a platform for the group to execute its strategy.”
The company manufactures toilet rolls, kitchen rolls, facial tissues and away from home products to UK retailers, making approximately 17 million units a week.
It has a combined growth (CAGR) rate of 16.2% over the last three years and boasts a 35% share of the discount market and 7% of the overall UK tissue market.
To capitalise on its strong position in the fast-growing discount market it has committed £18.2m of capital expenditure in the last three years and has recently purchased two additional converting lines to increase capacity to 143,000 tonnes per annum.
No comments yet