# Accrol Group completes acquisition of highly scalable biodegradable wet wipes business

- Link: https://www.directorstalkinterviews.com/accrol-group-completes-acquisition-of-highly-scalable-biodegradable-wet-wipes-business/412975441
- Published: 2021-04-09T07:24:06+01:00
- Author: Giles

**Accrol Group Holdings Plc** ([LON:ACRL](https://www.directorstalkinterviews.com/company/accrol-group-holdings/acrl.l)),
one of the UK’s leading independent tissue converters, has announced that the Group
has completed the acquisition of John Dale Limited, a highly scalable flushable 
and biodegradable wet wipes business, for a total cash consideration of £3.9 million,
funded from the Group’s existing cash reserves.

**Acquisition rationale**

The acquisition of John Dale is a strategic move into high growth products within
the wet wipes segment of the tissue market, providing a well invested platform on
which to build a sizeable business.

**Highlights**

·   John Dale has a long-established and unrivalled reputation as a privately-owned
manufacturer of high quality own branded and private label wet wipes and facial 
tissues for the UK retail market

·   Accrol and John Dale share several customers, but John Dale also brings a number
of significant new accounts into the Group

·   The product range includes flushable and biodegradable moist toilet wipes, anti-
bacterial and anti-viral wipes, facial cleansing wipes, baby and toddler wipes and
feminine hygiene wipes

·   The addition of incremental volume to the Accrol facial tissue business will
serve to leverage the Group’s existing production facility in Blackburn

The business currently operates a single daily shift, five days a week, from its
owned premises in Flint, North Wales, which is currently generating annualised revenue
of c.£6.0 million and EBITDA (normalised) of c.£0.6 million.

Following acquisition, Accrol’s primary areas of focus will be the expansion of 
the anti-bacterial and anti-viral wet wipe ranges and optimisation of production
facilities.

The acquisition includes the 47,000 sq.ft. property from which the business operates.
Both the business and the property were purchased from John and Pauline Dale.

> **Dan Wright, Executive Chairman of Accrol Group Holdings, said:**
> “I am delighted to announce the purchase of the John Dale business in Wales. A
> move into the attractive wet wipes’ segment has been on our radar for some time;
> as a natural extension of our product range and wholly in line with our growth
> strategy across the household products category. It was essential, however, for
> us to find a business with a disruptive and environmentally friendly product which
> we could scale through organic investment. John Dale fits our criteria for growth–
> quality of product and market positioning, operating excellence in its asset base,
> and the optimisation of our distribution strengths. It gives Accrol a ready-made
> platform on which to build a sizeable wet wipes operation and presents an unmissable
> opportunity for us to compound shareholder value.”

> **Gareth Jenkins, CEO of Accrol Group added:**
> “John Dale is an excellent business, with three modern wet wipe machines, which
> are significantly under-utilised. The UK wet wipe market is valued at £0.5bn. 
> We are confident that, with our wide customer base, market and operational know-
> how and a modest investment in additional machine assets, we can scale this business
> significantly, while generating strong margins, over the next two to three years.
> The slack within the property and working capital assets of the business will 
> fund much of this growth and accelerate financial returns.”

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