Bunzl pre close statement and acquisitions in France, Chile and Spain

Bunzl plc, the international distribution and outsourcing Group, is updating the market today relating to the year ending 31 December 2015 prior to entering its close period.

Overall trading is consistent with expectations at the time of the third quarter trading statement in October. At constant exchange rates, Group revenue growth for the year is expected to be approximately 5%, principally due to the positive impact of acquisitions together with some organic growth which continues to be affected by price declines on plastic resin based products, particularly in North America. The Group operating margin should be at the same level as the prior year.

Acquisitions continue to be a key part of the Company’s strategy for growth and Bunzl also today announces that it has purchased three further businesses in France, Chile and Spain.

Comatec SAS, which is based in Carcassonne, France, is engaged in the distribution of high-end, innovative single use tableware to restaurants and hotels throughout France but also exports products to a large number of distributors in a number of countries worldwide. Revenue in the year ended 31 December 2015 is expected to be €19 million.

Bunzl has also acquired Emilio Saray Y Compania Limitada, trading as DPS, a distributor of catering disposables and a variety of cleaning, safety and packaging products based in Santiago with a number of other locations throughout Chile. Customers include wholesalers and distributors as well as restaurants, supermarkets and other end users. Revenue in 2015 is expected to be CLP25.4bn (c.£24 million).

Finally in Spain the Company has purchased Faru S.L. Based in Zaragoza, the business is engaged in the sale of personal protection equipment, including fall arrest and head protection products and safety shoes, to distributors throughout Spain. Revenue in 2015 is expected to be €5 million.

The Company has now acquired 21 businesses so far this year with a total committed acquisition spend of £320 million which is a record level of spend for Bunzl in any one year. Bunzl’s strong cash flow and balance sheet and the continuing promising pipeline of further acquisition opportunities should enable the Group to consolidate further the markets in which it competes and continue to increase shareholder value.

Commenting on the acquisitions, Michael Roney, Chief Executive of Bunzl, said:

“The acquisition of Comatec is a significant addition to our strong business in France and expands our operations into the foodservice sector where we are already a leader in many countries. The purchase of DPS in Chile extends our business there into the foodservice and cleaning and hygiene sectors in a country where we have previously built a strong anchor position in the safety sector. Faru will complement our existing safety business in Spain by further enhancing our product offering. We are pleased to welcome the employees of all three businesses to the Group.”

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Bunzl pre close statement and acquisitions in France, Chile and Spain