9 July 2018
NorthEdge Capital has announced the close of NorthEdge Capital SME Fund I, LP (“SME Fund I”, “the Fund”) at its £120 million hard cap. The Fund was raised from existing investors and enables the firm to broaden its ability to take advantage of attractive investment opportunities in the U.K. regional lower mid-market.Find out more
The two-year journey has been absolutely fantastic, all our fears and reservations never materialized. All of those promises and guidance that NorthEdge have given us about how it would be working with NorthEdge were all true one-hundred percent.
Family shareholder and CEO AccrolPapers
If the business has a challenge in any particular area, whether it be Sales, Operations or Logistics, I know that I can pick up the phone to any member of the team at NorthEdge.
Accrol is a leading tissue paper convertor based in Blackburn. Established in 1993, the company manufactures around 16 million units per week and supplies some of the UK’s largest retailers, including Tesco, Aldi, Morrisons, Bookers and Wilkinsons.
One of Europe’s largest independent soft tissue converters, Accrol employs more than 300 staff and has a manufacturing capacity in excess of 80,000 tonnes per annum.
Accrol is a well invested, market leading manufacturer with a significant share of the UK market and an impressive customer base. With ambitious growth plans, the investment from NorthEdge enabled Accrol to better serve its customers.
NorthEdge backed the company from its maiden £225m Fund, taking a 46.25 per cent stake in July 2014. The company has since enjoyed rapid growth in recent years with run-rate turnover now exceeding £125m.
Accrol Group Holdings plc floated on the public market with an enterprise value of £116m and market capitalisation of £93m. NorthEdge retained a 15.04 per cent stake in the company, which commenced trading on the AIM market of the London Stock Exchange under the stock ticker ACRL:LN on June 10th 2016.
The company successfully raised approximately £63.5m (before expenses) by placing approximately 63.5m existing and ordinary shares with investors at a placing price of 100 pence per ordinary share.
This transaction was the firm’s first ever float and marks a partial exit for NorthEdge investors in just under two years. Dan Wright, COO and Partner, and George Potts, Investment Manager, led the transaction for NorthEdge.
“It has been a pleasure working with the management team at Accrol. The business has grown to become a dominant player in the market and the IPO will support the company’s continued expansion plans. The public markets remain a viable route for a number of our assets and we will continue to partner with founding teams to deliver a two-step exit at an enhanced value.”
“Working with the NorthEdge team has not only helped us to increase the value of Accrol, but has also enabled us to build a more robust business for the future encouraging us to invest in plant and machinery to increase capacity. Not only did the team provide funding for growth, but we also gained strategic leadership as well as a top quality management team. Enterprise value has jumped from £60m to £116m in under two years and NorthEdge’s support was instrumental in getting the business to this stage.”