Partner Article

Bunzl announces stack of international deals

Bunzl plc announced a bumper crop of international acquisitions on the London Stock Exchange on Thursday.

The outsourcing and distribution firm, headquartered in London, said it purchased four businesses in South America and the U.S, for an non-specified sum.

Amongst the deals, Bunzl made its fifth Brazilian acquisition to date with the purchase of safety equipment business, Vicsa Brasil Equipamentos de Proteção Individual Ltda, based in São Paulo.

Chief executive, Michael Roney, commented: “[The acquisition] will complement and expand our position in the personal protection equipment market, which we first entered through the purchase of Prot Cap in 2008, and provide an extended range of own label brand products to both new and existing customers.”

The company also took on the equipment firm’s sister, Vicsa Safety SA, based in Chile, and its subsidiary businesses which will give Bunzl a presence in Peru, Argentina, Colombia and Mexico.

In the U.S., Chicago-based firm Schwarz Paper Company LLC was taken on by Bunzl, as well as Destiny Packaging, which will give the buyer a base in Monterey, California.

Both Vicsa businesses were a predicted a combined aggregate revenue of $60m (£37.5m) for the year ending 31st December, while the Schwarz Paper Company brought in $363m (£226.5m) for the year ending 30th September 2012.

Destiny Packaging, which supplies fruit and vegetable packaging to food producers, mainly in the U.S. states of California and Arizona, reported a $45m (£28.1m) total revenue for 2011, and Bunzl predicted its revenues at $50m (£31.2m) for 2012.

Bunzl pledged to keep on all employees of the acquired firms, and welcomed them into the business in its statement.

The organisation’s total spend on acquisitions in the last 12 months came to around £270m, with six purchases made in the first half of the year, and Bunzl said it expects these transactions to yield total revenues of approximately £500m.

Mr Roney continued: “The acquisition of the Vicsa group of companies is an exciting development for us as it represents our first acquisition in South America outside of Brazil and provides Bunzl with a first entry into five high growth safety markets.

“The business has a quality own brand range of products which will expand and strengthen the Company’s product offering in this market sector.

“The purchase of Schwarz Paper Company and Destiny Packaging are also important acquisitions for Bunzl.

“Schwarz Paper Company significantly increases the size of our non-food retail business and will further enhance the Company’s market leading position in the grocery sector.

“Destiny Packaging complements both Cool-Pak and Netpak which we acquired in 2010 and 2011 respectively.

“Together these three businesses give us an increasing presence in the market of innovative packaging solutions for both growers and food retailers in North America.”

This was posted in Bdaily's Members' News section by Miranda Dobson .