Bunzl sells healthcare unit, buys four other businesses

International distribution group Bunzl said it was selling its UK healthcare division to Mediq and buying four other businesses.

The transactions are expected to be profit neutral to the group and will generate a small cash inflow. No financial details were disclosed.

Bunzl said it had bought New Zealand’s Toomac Ophthalmic & Solutions and GRC, an exclusive distributor of innovative medical technology devices in Australia.

“Both businesses specialise in surgical products and broaden the offering in Bunzl's healthcare business in the region, which has expanded significantly over the last two years,” the company said.

In October, it acquired VM Footwear, a distributor of personal protection equipment based in the Czech Republic, specialising in own brand footwear throughout Central Eastern Europe.

PM Pack, a distributor of packaging products in Denmark, mainly focused on food processor customers, was the fourth buy in Bunzl’s spending spree.

"The acquisitions are highly complementary, expand our product offering in each country, and all achieve double digit margins, with their profits offsetting the expected profit contribution from the announced disposal,” said chief executive Frank van Zanten.

Reporting by Frank Prenesti for Sharecast.com