13th Dec 2006 07:01
Bunzl PLC13 December 2006 13 December 2006 BUNZL PRE-CLOSE STATEMENT AND ACQUISITION OF INTERNATIONAL RETAIL PACKAGING BUSINESS Bunzl plc, the international distribution and outsourcing Group, is todayupdating the market prior to entering the close period for the year to 31December 2006 and announcing a significant acquisition in international non-foodretail supplies. With respect to the market update, the Company indicates that: • Overall trading in 2006 is expected to be in line with our expectations. • Revenue in North America continues to progress well with underlying growth in US dollars in the second half returning to historical levels in a more stable pricing environment. While there have been continued operating improvements from acquisitions made in 2005 and benefits from the acquisitions completed this year, the depreciation of the US dollar will have a negative translation impact on the full year results. • Overall underlying performance in the UK & Ireland has improved in the second half due to a combination of revenue growth and the impact of cost reduction initiatives implemented in the first half. Southern Syringe, acquired in July 2006, is operating as expected at considerably lower than the Group's average margins and the integration is proceeding as planned. • Overall revenue in Continental Europe has continued to develop well. Although the businesses outside France, as a whole, are performing well, the margin pressures in France in the first half have continued. • In Australasia strong overall revenue growth has resulted from a combination of moderate underlying performance and the effect of recent acquisitions. Bunzl also announces that it has acquired Keenpac Group Limited and itssubsidiaries from Glynn Bradshaw, other employees of Keenpac and UberiorInvestments plc, an investment vehicle of Bank of Scotland Corporate. The business, which is based in Leicester, is involved in the sale anddistribution of quality retail packaging principally in the UK and the US butalso in France, Italy, Switzerland, Hong Kong and Australia. Products, which arepredominantly sourced from Asia, include bags and boxes for a variety ofcustomers including luxury brands and high street retailers. Keenpac's consolidated revenue in the year ended December 2005 was £73.6 millionand the gross assets acquired are expected to be approximately £54.9 million. Commenting on the acquisition, Michael Roney, Chief Executive of Bunzl, said: "Keenpac is an excellent international company which significantly expands oursales of non-food retail supplies, broadening our product offering and customerbase, extending our sourcing capabilities and providing an opportunity todevelop our business in countries where we do not currently have a presence. Iam delighted to welcome the management team and all the staff of Keenpac toBunzl". Enquiries: Bunzl plc FinsburyMichael Roney, Chief Executive Roland RuddBrian May, Finance Director Mark HarrisTel: 020 7495 4950 Tel: 020 7251 3801 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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