Acquisition

Bunzl PLC

26 February 2024

 

26 February 2024

BUNZL ANNOUNCES THE ACQUISITIONS OF NISBETS IN THE UK AND FIRST ACQUISITION IN FINLAND

Bunzl plc, the specialist international distribution and services Group, today announces that it has signed an agreement to acquire Nisbets in the UK and Pamark in Finland.

Bunzl has signed an agreement to acquire an 80% stake in Nisbets and associated entities for an initial consideration of £339m. The purchase price will be settled in cash. Founded in 1983 by Andrew Nisbet, Nisbets is a highly respected omni-channel distributor of catering equipment and consumables in the UK & Ireland, Northern Europe and Australasia, offering an extensive product range including a wide range of own-brand products to foodservice customers. It has over 1,800 employees and an experienced management team that will remain with the Group post-acquisition, with Andrew Nisbet acting as a non-executive director and the family continuing to hold a minority interest in Nisbets. For the year ended 31 December 2023, Nisbets generated revenue of £498¹ million with a profit before interest, tax and amortisation of £40.2 million on a pro-forma basis^1,2 and total gross assets of £242¹ million. An additional earn-out amount may be payable based on Nisbets' financial performance in 2024. The transaction includes put / call options that enable Bunzl to acquire the remaining 20% stake in the future at a price based on Nisbets' financial performance at the time of option exercise, subject to certain conditions. The transaction is subject to customary regulatory approvals and a further announcement will be made in due course following completion. The transaction will be financed using the Group's existing cash resources and existing debt facilities, and is expected to be meaningfully accretive to EPS in the first full year following completion.

In January, the Group signed an agreement to acquire its first business in Finland, Pamark. This anchor acquisition in Finland is expected to complete later this month and will increase the number of countries in which Bunzl operates to 33. Pamark is a leading distributor of cleaning & hygiene, healthcare, foodservice and safety products to a broad range of private and public sector customers in Finland. The company generated revenue of EUR 56 million (c.£49 million) in 2023.

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

"The acquisition of Nisbets is an exciting step for Bunzl. Andrew Nisbet has built a high-quality business, with a well-respected management team. The business is complementary to our operations in the catering equipment sector and will enhance our own brand offering and digital capabilities. Pamark is our first acquisition in Finland and provides us with a strong platform from which to grow our presence across multiple end market segments in the country, supporting further expansion of our footprint in the Nordic region. This is an excellent start to 2024, maintaining the strong acquisition momentum of recent years. Our pipeline remains active, supported by the strength of our balance sheet."

1 Based on unaudited management accounts

2 Profit before interest, tax and amortisation (before exceptional items) for the year ended 31 December 2023 is £35.5 million

Enquiries:

Bunzl plc Frank van Zanten, Chief Executive Officer Richard Howes, Chief Financial Officer Tel: [phone]

Teneo Martin Robinson Olivia Peters Tel: [phone]

The proposed acquisition of Nisbets is a Class 2 transaction pursuant to the UK Financial Conduct Authority's Listing Rules. The person responsible for arranging the release of this announcement on behalf of Bunzl is Suzanne Jefferies, Group Company Secretary.

This announcement should be read in its entirety. In particular, you should read and understand the information provided in the "Important Notices" section of this announcement.

Important Notices

This announcement may contain certain forward-looking statements, beliefs or opinions, with respect to the financial condition, results of operations and business of Bunzl. In particular, all statements that express forecasts, expectations and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability of financing, anticipated cost savings and synergies and the execution of Bunzl's strategy, are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of forward-looking words such as "plans", "expects", "is expected", "is subject to", "budget", "scheduled", "estimates", "forecasts", "goals", "intends", "anticipates", "believes", "targets", "aims" or "projects". Words or terms of similar substance or the negative thereof, are forward-looking statements, as well as variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. They are based on numerous assumptions regarding Bunzl's present and future business strategies and the environment in which it will operate in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by forward-looking statements. Any forward-looking statements speak only as of the date they are made, and Bunzl gives no undertaking to update any forward-looking statements to reflect any changes in its expectations with regard thereto or any changes to events, conditions or circumstances on which any such statement is based. Bunzl and its directors accept no responsibility to third parties in respect of any such forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements.

No statement in this announcement is intended to be, nor may it be construed as, a profit forecast, estimate or projection of future financial performance.

 

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