Acquisition

RNS Number : 3703Q

Bunzl PLC

29 February 2016

 

29 February 2016

BUNZL ANNOUNCES FURTHER ACQUISITIONS

Bunzl plc, the international distribution and outsourcing Group, today announces that it has completed two further acquisitions in Brazil and the US and has entered into an agreement to acquire a business in Turkey.

Dental Sorria Ltda was acquired in December 2015.  Based in Belo Horizonte in the State of Minas Gerais, the business has expanded the Company's operations in Brazil into the dental supplies sector.  Revenue in 2015 was R$29.2 million.

In early February 2016, Bunzl purchased Earthwise Bag Company, Inc.  Located in California, the company supplies reusable bags to supermarkets and other retailers in the US.  With revenue of US$18.0 million in 2015, the business has expanded the Group's offering of environmentally friendly products to the grocery and retail sectors.

Finally, the Company has agreed to acquire Bursa Pazari İnşaat Sanayi ve Ticaret AS.  Based in Istanbul, the business is principally engaged in the sale of a variety of packaging and other foodservice supplies and disposable gloves to wholesalers, retailers and hospitals throughout Turkey and also exports products to a number of countries overseas.  Revenue in 2015 was TRY131.0 million.  Subject to clearance of the transaction by the Turkish Competition Authority, completion of the acquisition is expected to take place by the end of April.  The Company has initially agreed to acquire 80% of the shares with an option to purchase the remaining 20% in the future.

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

"Dental Sorria has further enhanced our product offering in the healthcare sector in Brazil while Earthwise Bag has broadened our product range and complements our business serving the grocery and retail sectors in the US.  The proposed acquisition of Bursa Pazari is also an important development for Bunzl as it will extend our operations in Turkey, being a market that we entered for the first time in May 2015, into the foodservice and healthcare sectors.  We are pleased to welcome each of the businesses and their employees to the Group."

Enquiries:

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

Tulchan David Allchurch Stephen Malthouse Tel: [phone]

 

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