Acquisition

RNS Number : 5247B

Bunzl PLC

11 January 2018

 

11 January 2018

ACQUISITIONS IN THE US AND UK AND

PROPOSED SALE OF BUSINESS IN FRANCE

Bunzl plc, the international distribution and outsourcing Group, today announces the acquisition of two further businesses in the US and the UK and the proposed sale of a business in France.

Revco, which is based in California, is engaged in the design, development and distribution of workplace safety and personal protection equipment to redistributors selling into a variety of end user markets, principally the welding and industrial sectors, throughout the US.  Revenue in the year ended December 2017 is expected to be US$37 million.

During December the Company agreed to acquire the business of the Aggora Group which is principally engaged in the design, supply, installation and maintenance of commercial catering equipment for end user customers throughout the UK.  The acquisition was completed in early January.  Revenue in the year ended March 2017 was £27million.

Bunzl also announces that in December it received a binding offer relating to the proposed sale of OPM in France.  OPM was originally acquired as part of Groupe Pierre Le Goff which was purchased in 2004.  It is a non-core business which has most recently focused on the distribution and sale of SodaStream products to retailers throughout France and the Company has decided that it is now an appropriate time to sell the business.  Revenue in the year ended December 2017 was €57 million.  Completion of the transaction is subject to the conclusion of a consultation process with OPM's works council and the subsequent entering into of a sale and purchase agreement.  Subject thereto, the transaction is expected to complete in the first quarter of 2018.

Finally, the Company confirms that the acquisition of Talge, which was announced on 23 November 2017, has been completed following clearance of the transaction by the Brazilian competition authority.

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

"The acquisition of Revco represents a further development of our safety business in the US with the business in particular complementing and strengthening our existing presence in the welding and industrial supplies market.  The purchase of Aggora Group has extended our catering equipment business in the UK."

Enquiries:

Bunzl plc Frank van Zanten, Chief Executive Brian May, Finance Director Tel: [phone]

Tulchan David Allchurch Martin Robinson Tel: [phone]

 

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