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.
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by RTT Staff Writer
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