Bunzl plc, the specialist international distribution and services Group, today announces that it has signed agreements to acquire four businesses and agreed to the sale of its UK healthcare division. Together, these transactions are expected to be profit neutral to the Group and will generate a small cash inflow. They reflect Bunzl’s ongoing discipline around returns focused capital allocation and portfolio optimisation.
The Group has agreed to the sale of its UK healthcare division to Mediq. In 2021, the UK healthcare division generated £216 million of revenue.
The Group remains focused on expanding its specialist healthcare business and in November completed the acquisition of Toomac Ophthalmic & Solutions, a distributor of ophthalmology products in New Zealand. In the 12 months to March 2022 the business generated revenue of NZD 11 million (c.£6 million). In October, Bunzl also signed an agreement to acquire GRC, an exclusive distributor of innovative medical technology devices in Australia with revenue of AUD 4 million (c.£3 million) in the 12 months to June 2022. Both businesses specialise in surgical products and broaden the offering in Bunzl’s healthcare business in the region, which has expanded significantly over the last two years.
In October, Bunzl also completed the acquisition of VM Footwear, a distributor of Personal Protection Equipment based in Czech Republic, specialising in own brand footwear throughout Central Eastern Europe and providing an entry into this category in the region. In the year to June 2022 the business generated CZK 366 million (c.£13 million) of revenue.
Furthermore, in November Bunzl completed the acquisition of PM Pack, a distributor of packaging products in Denmark, mainly focused on food processor customers. The acquisition strengthens the Group’s foodservice offering in Denmark and in the year to September 2022 the business generated revenue of DKK 142 million (c.£16 million).
Frank van Zanten, Chief Executive Officer of Bunzl, said:
“Today’s announcement reflects Bunzl’s commitment to optimal capital allocation across the Group. The announced acquisitions are highly complementary, expand our product offering in each country, and all achieve double digit margins, with their profits offsetting the expected profit contribution from the announced disposal. I would like to offer a warm welcome to all the teams from the newly acquired businesses to the Bunzl family.
I want to thank our departing colleagues for all the contributions they made as part of Bunzl, particularly most recently for their incredible dedication to supporting customers during the pandemic. I wish the whole team the very best for the future.”
Frank van Zanten, Chief Executive Officer
Richard Howes, Chief Financial Officer
Sunita Entwisle, Head of Investor Relations
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