23rd Jun 2015 06:15
LONDON (Alliance News) - Bunzl PLC on Tuesday said trading in the first half of the year has been in line with its expectations as it announced the acquisition of four businesses in the US, Colombia, Canada and France.
The FTSE 100-listed distribution and outsourcing company said overall trading in the first half of 2015 has been in line with its expectations, with revenue in the first half set to grow by around 6%, including a one-percentage-point benefit from positive exchange rate movements.
Organic revenue is set to grow by 1% in the quarter, with the remainder of the total growth driven by acquisitions, it said.
The lower organic growth rate year-on-year, Bunzl said, is down to slower growth in North America due to some lost business and pricing pressures on plastic resin-based products.
In a separate statement on Tuesday, Bunzl also said it has acquired four new businesses. It has agreed a deal to buy Memphis, Tennessee-based International Sourcing Company Inc, which makes a range of personal protection equipment, and has acquired Importadores Exportadores Solmaq SAS, a Bogota, Colombia-based personal protection equipment maker. Both deals are expected to complete by the end of this month.
It also has completed the acquisition of GF Inc, a Calgary, Canada-based industrial packaging and warehouse supplies company, and has acquired Ligne T SAS, a Montauban, France-based personal protection equipment manufacturer.
No financial details were provided on any of the transactions.
Bunzl said acquisitions remain a key part of its growth strategy and, including the four deals announced on Tuesday, it has acquired or agreed deals to buy ten companies in 2015 so far, spending a total of GBP210 million. It added the pipeline for further acquisitions in the remainder of 2015 also looks good.
By Sam Unsted; [email protected]; @SamUAtAlliance
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