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
Wal-Mart Stores, Inc. (WMT) Tuesday said nearly half of its orders since Thanksgiving have been placed on a mobile device, double compared to last year. Star Wars toys, 4K HDTVs 50-55", drones, Xbox One and PS4 video game bundles, iPad Minis and 14-ft. trampolines were among the categories that gained... Customers of Time Warner Cable in Midwest experienced outages that lasted around two hours on Monday evening, as Americans were busy making their last minute online purchases on Cyber Monday. In a very quiet move that would have gone unnoticed but for a scrutiny into the LinkedIn profile, Google has lapped up Robert Rose, former autopilot software engineering manager of Tesla, as part of the company's Google Robotics unit.
comments powered by Disqus
Follow RTT