Bunzl trades in line as acquisition frenzy continues

International distribution and outsourcing group Bunzl announced a trading statement for the period since 30 June on Wednesday, with overall performance consistent with expectations.

The FTSE 100 firm said at constant exchange rates, group revenue for the third quarter increased by 7%, with 3% contributed by acquisitions and 4% due to the impact of additional trading days compared to the same time last year.

Underlying revenue for the quarter was at a similar level to the third quarter last year, though the board said the recent weakening of sterling had a significant positive impact on the reported results for the third quarter.

The company also confirmed that it had completed three further acquisitions in the UK, Ireland and the Czech Republic.

“Tri-Star Packaging Supplies, which is based near London and has three other branches in England and Scotland, is principally engaged in the distribution of food packaging and foodservice products as well as some cleaning & hygiene consumables”, the board said in a statement.

“Kingsbury Packaging is located in Limavady, Northern Ireland and supplies food packaging related products to convenience stores and food retailers in Ireland.”

Revenue at the two acquisitions in 2015 was £28m and £5m respectively.

Bunzl also purchased Blyth, a Prague-based distributor of personal protection equipment to a variety of end user customers throughout the Czech Republic and Slovakia.

Revenue in 2015 was CZK 182m (£5m).

Additionally, Bunzl confirmed that the acquisition of Silwell, which was announced on 30 August, has been completed.

“The purchase of both Tri-Star and Kingsbury has further expanded our foodservice and food retail product offerings in the UK and Ireland and extended our customer base in these important market sectors,” said chief executive Frank van Zanten.

“The acquisition of Blyth represents our first step into the safety sector in the Czech Republic and complements our existing operations in central Europe.

“We are pleased to welcome the employees of all of the businesses to the group.”