Busi­ness In­sight Bunzl

The Daily Telegraph - Business - - Business Comment -

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

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