La Salle advise on sale of wet wipe manufacturer to PLC

La Salle are delighted to have advised John and Pauline Dale on the sale of John Dale Limited to Accrol Group Holdings plc.

Overview:

The pre-sale process for the Flintshire-based wet wipe manufacturer began in earnest back in 2018 when initial conversations took place between La Salle and John. Over the next two years the relationship matured, and personal circumstances changed. It was in July 2020 when La Salle were officially instructed as advisors to seek a purchaser for the company.

Taking on a new instruction during a global pandemic presented a unique set of hurdles to overcome. La Salle Partner Matt Dillon relished the challenge and took a leaf out of John Dale’s own book (yes, John has an autobiography available) in overcoming adversity to deliver a smooth sales process.

The sale took under eight months to complete from start to finish despite the country being in complete lockdown for most of the negotiation stage and bidding process.

Much of the deal was conducted remotely with limited in-person meetings. Uncharted waters for those involved but a great example of all parties coming together to get the best deal done.

Background:

John, together with wife Pauline, formed the manufacturing company in North Wales back in 1990. John Dale Limited developed into a major supplier of own label, branded, and award-winning wet wipes within the UK.

Those who know John will be aware of his tenacity and expertise as a businessman, not one to rest on his laurels or dwell on the fact he has been without sight for the majority of his life. His enviable achievements include John Dale Limited, receiving an MBE in 1997 for Services to Industry in North Wales and publishing his 2019 autobiography “Bobbins are not for me – The Life and Times of John Dale”.

The Deal:

The acquisition sees Accrol, the UK’s leading supplier of everyday tissue products, take control of the 47,000 sq ft manufacturing facility in Flint together with over 100 staff. It also delivers the listed group a stable platform to develop and expand their foray into the high-growth wet wipe segment of the tissue market.

Quotes:

Matt Dillon, Partner at La Salle Corporate said:

“It has been a pleasure to advise John & Pauline on their sale.

For any individual to start a business, grow it and sell it to a PLC is an incredible feat. However, John managed this having lost his sight as a child. It is true testament to his character, drive and determination.

I am in awe of what he has achieved, and it was truly a pleasure to advise him with his sale. I am so proud of him and I wish him & Pauline a very happy retirement that they deserve. We will remain friends for a long time."

Dan Wright, executive chairman of Accrol, added:

"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, chief executive of Accrol, added:

"John Dale is an excellent business, with three modern wet wipe machines, which are significantly under-utilised.

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."

John Dale MBE concluded:

"La Salle introduced a number of potential buyers early on in the process. We quickly identified the right buyer which suited our circumstances as the deal progressed.

It was important to me that my staff were looked after under new ownership. After 25+ years together, many of them are like family. Accrol’s personable approach gave me the assurance I was seeking and I’m confident the staff are in safe hands.

I was pleasantly surprised at the short time it took to complete the deal and hadn’t planned for it to be concluded so quick!"

Deal Advisors:

Buy-side Accrol: