Bunzl's acquisition strategy has seen it pick up three separate businesses across Spain and Canada, including PPE and packaging companies.
In Canada, AMFAS and Western Safety - both based in Vancouver - are distributors of commercial and industrial first aid and safety supplies, including a full range of personal protection equipment, to end user customers throughout Western Canada. The businesses, which together have aggregated annualised revenue of C$16 million, also provide safety-related services including training programmes and other workplace safety solutions.
Tecnopacking, which is based near Valencia, distributes industrial and disposable packaging products to end users and operates in a variety of different sectors throughout Spain as well as in Portugal. Revenue in 2016 was €38 million.
Bunzl has now acquired eight businesses this year for a total committed spend of approximately £290 million, adding aggregate annualised revenue of £370 million. With an active acquisition pipeline and ongoing discussions taking place, the Company expects to complete further acquisitions during the remainder of the year.
Bunzl Chief Exec 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.”
Bunzl recently updated the market with its six month financials - overall trading was announced as consistent with expectations at the time of the Q1 trading statement in April. Group revenue for the half year is expected to have increased 7% at constant exchange rates due to the improved underlying growth of 3%-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.
