NorthEdge Capital, the private equity firm focused on investing in businesses based in the North of England, has backed Blackburn-based tissue converter, Accrol Papers Limited, in a £66million deal.
Accrol, established in 1993, employs 300 staff with a current turnover exceeding £100million. One of Europe’s largest independent converter of soft tissue products, the business has a manufacturing capacity in excess of 80,000 tonnes per annum. The business manufactures a wide range of household and away from home tissue products for a range of leading retailers and service providers from its purpose-built production facilities in Blackburn.
The business, founded by the Hussain family, has grown significantly in the last five years. The investment by NorthEdge will facilitate the acceleration of the company’s expansion programme to increase capacity and support further growth, job creation and product development.
The deal was led by NorthEdge partners Ray Stenton, Dan Wright and investment director Tom Rowley.
Majid Hussain MBE, CEO of Accrol, said: “The investment from NorthEdge follows a sustained period of growth for the business during the last five years. The capital will allow us to accelerate capital expenditure to increase output and ensure that we continue to deliver the highest quality products and services to our customers.
“We look forward to working with the team at NorthEdge to drive the business forward and continue to increase our support to customers.”
Dan Wright, Partner at NorthEdge Capital, who will join the Board of Accrol alongside Ray Stenton, said: “NorthEdge works exclusively with successful companies and ambitious management teams based in the North of England, and Accrol is no exception; a fast growing business with a significant share of the UK market and an impressive customer base. With ambitious growth plans, the investment from NorthEdge will enable Accrol to accelerate its strategic development. We look forward to supporting the management team at Accrol as they continue to drive exceptional performance for all of its stakeholders.”
The deal is the sixth transaction by NorthEdge Capital from its maiden fund, which closed at £225million in March 2013.
EY (Tim Morris and Emma Pickering) and KPMG Tax (Steve Heath and Jo Taylor) advised NorthEdge Capital. The deal was introduced by PwC (Andy Parker and Wendy Mason) who advised Accrol. Legal advice was provided to NorthEdge by Addleshaw Goddard (Paul Medlicott and Andy Green), Pinsent Masons advised Accrol (Helen Ridge and Andy Philips).
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