logo
Share SHARE
FONT-SIZE Plus   Neg

Bunzl Expects 7% Revenue Growth In H1; Buys US-Based Service Paper Co.

Distribution and outsourcing group Bunzl Plc (BNZL.L, BZLFY.PK) Wednesday said it expects first-half revenues to grow about 7 percent at constant exchange rates and also announced the acquisition of a U.S. firm, Service Paper Co.

Bunzl did not disclose how much it paid for the company that distributes disposable supplies to grocery, foodservice, food processor and industrial packaging sectors throughout the Pacific Northwest.

For the year ended December 31, 2011, revenue of the business acquired was $61 million and gross assets purchased are expected to be $18 million, Bunzl noted.

Commenting on the acquisition, Michael Roney, chief executive of Bunzl said, "Service Paper is an excellent business with a reputation for providing high levels of customer service which will complement and expand our existing business in the region."

In early May, the company had completed three acquisitions in the U.S., Israel and Australia.

Bunzl said including the acquisition of Service Paper, it has completed five acquisitions year to date with annualized revenue of about 130 million pounds.

In a trading statement ahead of its first half ending June 30, 2012, Bunzl said along with a 4 percent underlying revenue growth, acquisitions and the disposal of the UK Vending business also helped it grow total revenues.

Bunzl added that its operating margin also improved slightly due to the impact of acquisitions completed in 2011 and the sale of the UK Vending business.

BNZL.L is currently trading at 1,015 pence, down 5 pence or 0.49 percent, on a volume of 35 thousand shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
New York's landmark Waldorf Astoria hotel will be shut for up to three years starting spring 2017 as its Chinese owner Anbang Insurance Group Co. plans to convert most of its 1,413 hotel rooms into luxury condominiums, according to media reports. Starbucks Corp., for the first time, will offer a single-origin coffee from India to customers in the U.S. under an expansion of the specialty coffee retailer's joint venture partnership with Indian conglomerate Tata Group. Starbucks customers in the U.S. will be able to experience a rare, small-lot coffee from the Tata Nullore Estates located in the Coorg region of India. For the Independence Day week-end, starting June 30, travel volume will be a record this year, predicts the American Automobile Association or AAA. Friday and Monday afternoons are expected to be the peak hours. Cruising seems to be a favorite travel mode this year with 35 percent increase from last...
comments powered by Disqus
Follow RTT