Liberum acts as Joint Bookrunner on fundraising for Accrol Group to support the acquisition of Leicester Tissue Company

We are pleased to announce that Liberum acted as Joint Bookrunner on the recently announced fundraising for Accrol Group Holdings Plc. The Company raised gross proceeds of £38.5m via a Primary Placing to fund the cash consideration and associated transaction costs for the acquisition of Leicester Tissue Company Limited (“LTC”). In order to meet excess investor demand, certain members of the Accrol Group management team also exercised options and sold approximately £2.8m of Ordinary Shares via a Secondary Placing. The Company also raised £4.1m via an Open Offer. Zeus Capital acted as Nomad and Joint Bookrunner alongside Liberum.

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Founded in 2014, LTC is a well-invested, fast growing, independent tissue conversion business, supplying private label and branded toilet roll and kitchen towels to UK customers, including major supermarket multiples and value retailers. In the unaudited financial year ended 30 September 2020, LTC delivered revenue of £28.0m and adjusted EBITDA of £4.5m, with a revenue CAGR of c. 70 per cent. between FY17 and FY19. The Acquisition will increase Accrol's share of the total UK retail tissue market to approximately 16 per cent. of the £1.7 billion UK industry and consolidate its position in the private label retail tissue market.

Accrol Group will pay £35.0m up front for LTC, and up to a further £6.8m in deferred consideration due in 2021 contingent on certain performance criteria being achieved.

The Placing was oversubscribed and received significant support from both existing holders and new blue-chip institutional investors.

Liberum has been Joint Corporate Broker to Accrol Group Holdings Plc since March 2020.

Liberum Team

Investment Banking – Clayton Bush, Edward Thomas, Nikhil Varghese, Anthony Schia

Sales – Julian Collett, Oliver Baxendale, Jamie Vickers, Alistair Smallwood

Legal – Rebecca Gordon, Alice Foster

CIR- Lynsey Cox, Natalie Clarke

Settlements – Mark Proctor, Rob Simpson

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