Bunzl snaps up two more firms as dealmaking spree continues
Outsourcing giant Bunzl has announced two more acquisitions, bringing its tally for the year to 14 and at a total spend of more than £425m.
The FTSE 100-listed firm said it had snapped up CT Group, a distributor of surgical and medical devices based in Brazil and Pittman Traffic and Safety Equipment, which sells safety solutions such as bollards and speed bumps.
Both companies generated a combined revenue of approximately £48m in 2022. The CT Group acquisition remains subject to competition authority approval.
Bunzl, which supplies businesses worldwide with a range of products from coffee cups and food labels to PPE, announced the deals alongside a solid trading update for the third quarter.
The distribution specialist reiterated its adjusted operating profit outlook for 2023 and said it expects record operating margins for 2023.
Revenues though declined slightly by 4.8 per cent at constant exchange rates and Bunzl said it expects the figure to come in slightly lower than 2022.
Underlying revenue also dipped nearly five per cent, driven by a continued decline in COVID-19-related product sales and a “reduced level of inflation benefit”.
Shares fell nearly 5 per cent in early trading.
Frank van Zanten, chief executive officer of Bunzl, said: “Our performance continues to highlight the strength and resilience of the Group’s business model. I remain confident in our ability to sustain a higher operating margin compared to pre-pandemic levels, supported by the acquisitions we have made over the period.”
He added: “I remain excited by the Group’s medium-term opportunities, which continue to be driven by our proven compounding growth strategy and active acquisition pipeline, supported by a strong balance sheet.”
Bunzl’s share price is up 6.13 per cent in the year to date. The firm has made more than 200 acquisitions since 2004 in a 19-year dealmaking bonanza.