May 25, 2024

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Navigator raises UK buy price for Akrol shares from £0.38 to £0.39

Navigator raises UK buy price for Akrol shares from £0.38 to £0.39

Navigator today, 3 May, announced the terms of a proposed increase and final cash offer issued by Navigator UK and to be made for Accrol’s share capital (Increase and Final Offer). Under the terms of this closing offer, Accrol shareholders are entitled to receive £0.39 in cash for each share.

Navigator recalled in a press release that on March 22, 2024, the board of directors of Navigator Paper UK Limited, a 100% indirect subsidiary of Navigator, and Accrol Group Holdings announced the terms of the proposed offer for Navigator UK. The acquisition of the entire issued and payable share capital of Akrol, a tissue paper processing company based in the United Kingdom.

Acrole

Akrol is a processor and supplier of toilet paper, kitchen rolls, facial tissues and wet wipes. For the financial year ending April 30, 2023, Accrol posted revenues of £242 million, adjusted EBITDA of £15.6 million and net debt of £26.8 million.

Navigator views Acrole as a “fundamental pillar in the strategy to sustainably expand its tissue business in the Western European market,” its long-term value creation strategy.

“The company will focus on strengthening Acroline’s market position as a trusted benchmark operator in the UK tissue paper private label market and supporting its growth across all its key product segments,” the same note said.

He added, “Acrol can benefit from Navigator’s expertise and experience in operating similar tissue operations, helping to increase efficiency and productivity, as well as Navigator’s additional paper capacity and access to capital to provide the ability to support future growth.”

On the other hand, he highlighted, “the integration of industrial units, human resources and business relationships with Accrol customers in the Navigator Group has the potential to improve its performance for the benefit of customers, employees and shareholders”.

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The proposed acquisition of Acrolin will strengthen Navigator’s position in the Western European tissue market. Navigator expects the acquisition to result in consolidated revenue of approximately £500 million, with the UK market expected to contribute 50% of Navigator’s total tissue revenue.

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