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Bunzl announces trading statement and completion of three acquisitions
Yesterday, Bunzl announced its trading statement for the period since 30 June 2016 and revealed that it has completed three further acquisitions: in the UK, Ireland and the Czech Republic.
Overall performance is as was expected and at constant exchange rates, Group revenue for the third quarter has increased by 7%, with 3% contributed by acquisitions and 4% due to the impact of additional trading days relative to the comparable period last year. Underlying revenue for the quarter was at a similar level to the third quarter last year, although the recent weakening of sterling has had a significant positive impact.
The acquisitions include Tri-Star Packaging Supplies, based near London and with three other branches in England and Scotland, which is principally engaged in the distribution of food packaging and foodservice products as well as some cleaning & hygiene consumables (pictured). It supplies a variety of end user customers, including 'food-to-go' retailers, contract caterers and food processors, throughout the UK. Revenue in 2015 was £28 million. Kingsbury Packaging is located in Limavady, Northern Ireland and supplies food packaging related products to convenience stores and food retailers in Ireland. Revenue in 2015 was £5 million.
Bunzl has also purchased Blyth, a Prague based distributor of a broad range of personal protection equipment to a variety of end user customers throughout the Czech Republic and Slovakia. Revenue in 2015 was CZK182 million (c.£5 million).
Finally, Bunzl confirms that the acquisition of Budapest-based Silwell, the supplier of a variety of disposable foodservice items both to distributors and end users operating in the hotel, restaurant and catering sectors in Hungary, which was announced in August 2016, has been completed.
There has been no significant change in Bunzl's financial position during the period and the Group continues to have substantial funding headroom available. Growth through acquisitions is an important part of the ongoing strategy of Bunzl. With an active pipeline and ongoing discussions taking place, the company expects to make further acquisitions over the coming months.
"The purchase of both Tri-Star and Kingsbury has further expanded our foodservice and food retail product offerings in the UK and Ireland and extended our customer base in these important market sectors," reports Frank van Zanten, chief executive of Bunzl. "The acquisition of Blyth represents our first step into the safety sector in the Czech Republic and complements our existing operations in central Europe.
"We are pleased to welcome the employees of all of the businesses to the Group."
T: 0207 725 5000
27th October 2016