Bunzl eyes further deals after record spending on acquisitions

Bunzl said it was considering further acquisitions after the purchase of an industrial packaging company took its spending on takeovers this year to a record £600m.

In a trading update the FTSE 100 distribution and outsourcing group said it had bought Lightning Packaging, a UK supplier of boxes, tapes and other packaging products with annual revenue of £14m. It did not disclose the price.

Bunzl, whose products include packaging, catering equipment and safety wear, said trading was consistent with expectations when it posted third-quarter figures in October.

At existing exchange rates, revenue for the year is expected to increase by about 15%. Excluding currency fluctuations revenue will rise by between 9% and 10% based on a mix of organic revenue and income from acquisitions.

This year's acquisition spending of about £600m is almost double the previous high of £327m achieved in 2015. Bunzl said there were more opportunities to snap up smaller operators in its markets.

Bunzl said: "The ability to consolidate the company's fragmented markets through acquisitions is an important part of the ongoing strategy of Bunzl […] The pipeline for acquisitions remains active."