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
Chinese Internet giant Baidu, Inc. on Wednesday announced the release of Apollo 1.5, the second generation of its Apollo open-source autonomous vehicle software. The company also said it plans to set up a 10 billion yuan, or $1.5 billion Apollo self-driving car fund to invest in 100 autonomous driving projects in the next three years. Facebook Inc. said it is tightening controls on its advertising targeting policies and tools after a ProPublica expose last week found that advertisers on the social media site were able to target users interested in anti-Semitic topics. The company clarified that it has long had a firm policy against hate on Facebook. Ryanair Holdings Plc pilots have rejected a cash bonus offered to them by the airline in exchange for cancelling their leave as the airline grapples with massive flight cancellations. Ryanair is cancelling 40 to 50 flights daily for the next six weeks, till the end of October, after it admitted to having "messed up" the planning of pilot holidays.
comments powered by Disqus
Follow RTT