Acquisition

RNS Number : 5238U

Bunzl PLC

02 August 2022

 

02 August 2022

BUNZL ACQUIRES BUSINESSES IN THE NETHERLANDS, BRAZIL, AUSTRALIA AND THE UK

Bunzl plc, the specialist international distribution and services Group, today announces that it has entered into agreements to acquire four businesses.

On 1 August, the Group completed the acquisition of Containit, a fast-growing distributor of warehouse storage solutions to the resources and defence sectors in Australia. The expansion into warehouse solutions complements Bunzl's existing offering in the Australian safety market, further strengthening our position there. The business generated revenue in 2021 of AUD 17 million (c.£9 million).

In July, Bunzl entered into an agreement to acquire Corsul Group ("Corsul"), a leading distributor of personal protective equipment (PPE) to end users in Brazil, with a strong presence in the South of Brazil. In 2021 Corsul generated revenue of BRL 260 million (c.£35 million). Completion of the acquisition is subject to competition authority clearance.

Bunzl completed the acquisition of AFL Groep ("AFL") in July, a distributor of logistics and warehouse related supplies to customers in the Benelux. In 2021, AFL generated EUR 19 million (c.£16 million) of revenue. The acquisition increases Bunzl's exposure to these attractive end markets, and its strong online capabilities enhance Bunzl's digital presence.

In July, Bunzl also completed the acquisition of London Catering & Hygiene Solutions ("LCHS"), a distributor of catering supplies and cleaning and hygiene products in the UK, which complements our existing business, and generated £5 million of revenue in the 12 months to May 2022.

We are also pleased that the Group has completed the previously announced acquisition of Hygi.de, a leading and fast-growing online distributor of cleaning and hygiene products in Germany.

Commenting on the acquisitions, Frank van Zanten, Chief Executive Officer of Bunzl, said:

"I am delighted to be welcoming these four businesses to the Bunzl family. Our acquisition of Containit allows us to expand into an attractive adjacent market, whilst the acquisition of Corsul will allow Bunzl to develop its operations in the Southern Brazilian PPE market. AFL drives our continued expansion into the attractive logistics sectors in Benelux and, at the same time, increases our digital footprint. Furthermore, the acquisition of LCHS supports our UK business by growing our presence in the South of the UK.

In total we have announced six acquisitions year-to-date, with a total committed acquisition spend of more than £220 million. The Group's strong balance sheet continues to support our compounding growth strategy, with our acquisition pipeline remaining active."

Enquiries:

Bunzl plc Frank van Zanten, Chief Executive Officer Richard Howes, Chief Financial Officer Sunita Entwisle, Head of Investor Relations Tel: [phone]

Tulchan Martin Robinson Olivia Peters Tel: [phone]

 

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