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Bunzl acquisitions in France and UK

20 July 2017 07:30

Bunzl, the international distribution and outsourcing group, has made a binding offer for the acquisition of a group of businesses in France and has also purchased a marketing services business in the UK. The group has made a binding offer for Hedis, which trades through a number of subsidiaries across France and is engaged in the sale and distribution of cleaning & hygiene related products to a variety of end user customers, and two other businesses, Comptoir de Bretagne and Generale Collectivites, which distribute light catering equipment and tableware to a similar fragmented customer base in France.

Bunzl said: "In 2016 the aggregate revenue for the businesses to be acquired, which trade at above the Continental Europe business area average operating margin, was €155 million, of which €131 million related to Hedis and €24 million related to Comptoir de Bretagne and Generale Collectivites.

"If acquired, Bunzl expects to realise a number of synergies, principally from purchasing savings."

It said the acceptance of the company's offer was subject to the completion of a consultation process with the relevant works councils of the target companies and subsequently the approval of the French competition authorities. Bunzl said it had also recently acquired Pixel Inspiration, a marketing services business in the UK which specialises in the digital signage sector.

As well as providing project based installations for multi-site retailers and financial institutions, Pixel is also engaged in the provision of management and consultancy services related to the usage of such installations. Revenue in 2016 was £7 million.

Chief executive Frank van Zanten said: "The proposed purchase of Hedis, Comptoir de Bretagne and Generale Collectivites is an important acquisition for Bunzl as together they will further expand our existing cleaning & hygiene operations in France and extend our business there into the catering equipment sector for the first time.

"I am absolutely delighted that we have the opportunity for both groups to work together as we look to grow and develop in the large and fragmented French market.

"The acquisition of Pixel Inspiration represents a strategic development for our marketing services business in the UK by extending our existing marketing fulfilment proposition into digital signage which is a market that is expected to grow significantly over the coming years.

"I am pleased that the level of acquisition activity has picked up in 2017. So far this year Bunzl has acquired, or agreed in principle to acquire, 10 businesses for a total committed spend of approximately £530 million."

Story provided by StockMarketWire.com

Related Company: BNZL

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