Portugal’s Navigator to buy UK loo roll maker Accrol in £127.5m deal

Under the terms of the offer, Accrol shareholders will receive 38p per share in cash. This is a premium of around 11.8% to the closing share price on Thursday.

Navigator said the offer "presents a compelling opportunity to enter the UK market through the acquisition of a leading UK independent tissue paper converter, with competitive advantages, complementary values and strong alignment to Navigator".

Accrol chief executive Gareth Jenkins said: "Accrol has undergone a period of significant transformation and growth over the last four years, investing in fully automating its tissue converting operations to enhance manufacturing capabilities. I am proud and grateful to the efforts and commitment of our people.

"We have grown to become a leading manufacturer of private label, own branded and licensed tissue products to the UK market and have developed broad retail relationships and a robust supply model that enables us to produce great quality and value products.

"Combining with the Navigator Group brings together a highly complementary product offering. It will enable Accrol to benefit from the capabilities, scale, network and resources of Navigator, building on the strategic progress we have made to date."