Accrol agrees to final offer of £130.8m from Navigator Paper

Tissue maker Accrol Group said on Friday that it has agreed to be taken over by Navigator Paper after it made an improved and final offer that values the company at £130.8m.

Under the terms of the deal, Accrol shareholders will receive 39p per share in cash, up from a previous offer of 38p a share.

The increased offer represents a premium of about 14.7% to the closing share price on 21 March, which was the last business day before the start of the offer period.

It also represents a premium of approximately 52% to the average EV/LTM EBITDA multiple of 6.6x for publicly-traded companies across private label tissue, private label hygiene and other UK companies that focus on private label products, Accrol said.

Chief executive Gareth Jenkins said: "The Accrol board believes that the increased and final offer and being part of a vertically integrated group invested into pulp and tissue manufacturing capacity represents significant value for shareholders against a back drop of increasing pulp and tissue prices and a very different and challenging future environment."