Acquisition

RNS Number : 8689Q

Bunzl PLC

23 June 2015

 



23 June 2015

BUNZL EXPANDS WITH FURTHER ACQUISITIONS

IN THE US, COLOMBIA, CANADA AND FRANCE

Bunzl plc, the international distribution and outsourcing Group, today announces that it has agreed to acquire four businesses in the US, Colombia, Canada and France.

The Company has entered into an agreement to acquire International Sourcing Company, Inc., which trades as Cordova Safety Products.  Operating from two facilities and based in Memphis, Tennessee, Cordova Safety Products is engaged in the sale of a variety of personal protection equipment, principally gloves, to distributors throughout the US.  Most products supplied are own label.  Revenue in the year ended 30 September 2014 was US$81.0 million (c.£51 million).  The acquisition is expected to be completed at the end of June.

Bunzl has also entered into an agreement to acquire Importadores Exportadores Solmaq SAS based in Bogota, Colombia.  Solmaq supplies a complete range of head to toe personal protection equipment and other welding and industrial consumables to distributors, retailers and end users throughout Colombia from a network of six facilities.  Revenue in the year ended 31 December 2014 was COP54.8 billion (c.£14 million).  Completion of the acquisition is expected to take place at the end of June.

The Company has also completed the purchase of GF, Inc., a distributor of industrial packaging, warehouse supplies and equipment based in Calgary, Canada.  The business has a large and diverse base of end user customers in western Canada serviced from 11 facilities.  Revenue in the year ended 31 December 2014 was C$81.4 million (c.£42 million).

Finally Bunzl has acquired Ligne T SAS, a distributor of personal protection equipment, principally workwear, based in Montauban, France.  The business supplies a variety of end user customers throughout the south west region of France.  Revenue in the year ended August 2014 was €5.7 million (c.£4 million).

The acquisition of Istanbul Ticaret, which was announced on 15 April 2015, has been completed following clearance of the transaction by the Turkish Competition Authority.

Commenting on the acquisitions, Michael Roney, Chief Executive of Bunzl, said:

"The acquisition of Cordova Safety Products, Solmaq and Ligne T each represent an extension of our existing safety businesses in the US, Colombia and France as we continue to look to expand and develop our operations in this important sector.  The purchase of GF is the sixth acquisition we have made in Canada since 2013 as a result of which we have developed a national business in Canada with annual revenue in excess of C$700 million.  We welcome all employees of the new businesses to Bunzl".

Enquiries:

Bunzl plc Michael Roney, Chief Executive Brian May, Finance Director Tel: [phone]

Tulchan David Allchurch Stephen Malthouse Tel: [phone]

 

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