Lancashire tissue group acquired in deal by key European player
Blackburn-based Star Tissue UK has been acquired by a privately owned German company, WEPA Professional, for an undisclosed sum.
WEPA Professional is a toilet paper and kitchen towel specialist and will operate the Blackburn business under the name, WEPA Professional UK, signalling the group’s commitment to grow its UK operations. The business currently has operations in 12 European locations.
WEPA’s existing UK division has more than 300 employees across two main sites in the UK, in Bolton, where it runs its commercial operation, and its paper mill and converting facility in Bridgend, South Wales.
Andreas Krengel, chief executive of Business Unit Professional of the WEPA Group, said: ‘WEPA stands for the production of high quality tissue paper, and the UK market is strategically important for us. We are delighted to continue the impressive growth of Star Tissue with managing director Khalid Saifullah and his team as WEPA Professional UK.”
Khalid Saifullah will remain as managing director of WEPA Professional UK and aims to drive the integration process and foster continued growth.
He said: “In WEPA Professional, we have found a partner that shares our values and stands for high quality products and first class customer service.”
Saifullah serves on the board of the Lancashire Local Enterprise Partnership, was made a Deputy Lieutenant of Lancashire in 2019 and is a Trustee of Minority Enterprise Development Trust.
Star Tissue has a significant market position with three state-of-the-art fully automated converting lines, a warehouse and modern office space.
In the year to 30 September 2022, the company made pre-tax profits of £5.5m on turnover of £42.6m. The three directors took dividends / directors loans, totalling £877,500.
The business is now part of the international production network of the WEPA Group in the UK and at 12 other locations in Europe.
Both WEPA Professional and Star Tissue UK say they are committed to a seamless transition, maintaining operations, and retaining the current workforce.
Founded in 2003 as a family business, Star Tissue has grown to become one of the UK’s leading independent manufacturers of hygiene paper products.
The Blackburn site, with 130 staff, produces a wide range of high quality tissue products, including the Sirius, Bliss, Kleenall, and Softelle brands, known for their recognition in the UK market.
The plant has a converting capacity of 27,000 tons per annum. Star Tissue featured in the London Stock Exchange’s list of 1000 most dynamic and fast growing companies in 2016, and Most Inspiring Companies in Europe in 2017.
Star Tissue was advised by KPMG Corporate Finance (Mark Booth and Gary Chiang) and Napthens (Richard Robinson).
Legal advice was provided by Mayer Brown to the buyers.
Gary Chiang, associate director, Corporate Finance at KPMG UK, said: “WEPA Professional provides a strong commercial and cultural fit for Star Tissue. The combination of the two businesses will create a solid platform that is well positioned for future growth in the away-from-home market.”
