NorthEdge hopes to clean up with £66m Accrol Papers deal

MANCHESTER-based private equity firm NorthEdge Capital has invested £66m in Blackburn toilet roll maker Accrol Papers.

Accrol is one of Europe’s largest independent soft tissue converters, with manufacturing capacity of 80,000 tonnes a year. It supplies many of the discount retailers which have enjoyed strong growth during the recent downturn.

The £100m turnover business was founded by Jawid Hussain 20 years ago and is now run by his three sons Majid, Wajid and Mozam. The size of NorthEdge’s stake was not disclosed.

They are staying on and say they will use the capital to invest in the manufacturing process and increase output. The deal was led by NorthEdge partners Ray Stenton, Dan Wright and investment director Tom Rowley.

Chief executive Majid Hussain 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.”
 
NorthEdge partner Dan Wright, who will join the board, 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 £225m in March 2013.
 
EY and KPMG advised NorthEdge. The deal was introduced by PwC who advised Accrol. Legal advice was provided to NorthEdge by Addleshaw Goddard, while Pinsent Masons advised Accrol.

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