Accrol Group - a clean wipe-up?
You do not need me to tell you just how popular toilet rolls are currently.
And Accrol Group (LON:ACRL) which is one of the UK’s leading tissue converters, is big in loo rolls.
It can now ‘wipe’ even more of its marketplace.
It is buying the Leicester Tissue Company for £41.8m, in an immediately earnings enhancing acquisition. LTC is an excellent fit, also being a tissue converter, supplying private label and branded toilet roll and kitchen towel to its UK customers.
This deal takes Accrol’s share of the £1.7bn UK market up to about 16%.
The group’s shares hit 58.5p early in September but had eased back to 44p prior to news of the expansion.
They are now trading at around 48.5p and look very capable of edging up to the mid 60p range.
(Profile 12.03.19 @ 22p but set no Target Price)