Business Insight Bunzl
Distribution company Bunzl has sold its UK-based marketing services business as it plans more acquisitions in the coming year, writes Rhiannon Curry.
The company said the decision to sell the division was “non-core” because opportunities to expand it overseas were limited. It generates an annual revenue of £46m.
In a trading update, Bunzl said that during the first six months of the year it expects its revenue to have jumped by 5pc. Growth would have been higher but currency changes weighed on its profits. Its revenue growth has “returned to more normal levels” in recent months, having been boosted previously by new business won in North America.
Bunzl distributes packaging, cleaning and office supplies, and has so far committed to spend £105m on buying other companies this year. The pipeline for acquisitions “remains active”, it said. Last year, it spent a record £616m, almost double the previous year’s total.
However, it has been hit by concerns that it will lose market share to Amazon Business, a new division from the giant online retailer that allows businesses to purchase supplies.
Bunzl is gearing up for more acquisition deals later this year
Frank van Zanten Chief executive