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Trading statements

Bunzl eyeing more acquisitions

28 June 2017 07:37

Bunzl, the international distribution and outsourcing group, has purchased three further businesses in Spain and Canada and expects to complete further acquisitions during the remainder of the year.

In a trading statement for the six months ending 30 June, the group said that overall trading was consistent with expectations at the time of the first quarter update in April.

It said: "Group revenue for the half year is expected to have increased by 7% at constant exchange rates due to the improved underlying growth of between 3% and 4% and a similar impact from acquisitions.

"In addition, currency translation movements are expected to have increased the constant exchange revenue growth by 12%.

"As previously indicated, the underlying revenue growth is mainly due to the additional business won, albeit at lower margins, in North America towards the end of 2016." Bunzl said acquisitions continued to be an important part of the company's strategy for growth and it announced that it had purchased three further businesses in Spain and Canada: Tecnopacking, based near Valencia, and AMFAS and Western Safety, both based in Vancouver.

Bunzl said it had now acquired eight businesses so far this year for a total committed spend of approximately £290 million, adding aggregate annualised revenue of £370 million.

It said: "With an active acquisition pipeline and ongoing discussions taking place, the Company expects to complete further acquisitions during the remainder of the year."

Chief executive Frank van Zanten said: "The acquisition of Tecnopacking has further extended our operations in Spain which have grown significantly in recent years with total annualised revenue now approaching €200 million.

"We have also seen rapid growth in Canada with the purchase of AMFAS and Western Safety bringing the total number of businesses acquired there since the beginning of 2015 to nine. We are delighted to welcome all of their employees to the Group. "I am particularly pleased to see that the level of acquisition activity has picked up this year with the purchase of a number of high quality businesses which have allowed us to expand the Group further.

"With a promising pipeline of additional opportunities, I would expect us to complete further acquisitions as the year progresses."

Story provided by StockMarketWire.com

Related Company: BNZL

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