Transatlantic and Iberian acquisitions bring another boost for Bunzl

BEN WOODS

OUTSOURCING firm Bunzl said revenues were enjoying a boost from new business in the US as it sealed a string of overseas acquisitions.

The FTSE 100 company said half-year revenues would lift by seven per cent at constant currency, with underlying growth rising three to four thanks to extra work secured in America last year. Shares rose as the company also announced deals for three businesses in Spain and Canada.

Chief executive Frank van Zanten said trading was in line with expectations and it was on track to snap up more firms this year.

He said: “The acquisition of Tecnopacking has further extended our operations in Spain, which have grown significantly in recent years with total annualised revenue now approaching €200 million (£177m).

“We have also seen rapid growth in Canada with the purchase of AMFAS and Western Safety bringing the total number of businesses acquired there since the beginning of 2015 to nine.”

Bunzl, which supplies food packaging to restaurants and hotels and shopping bags to the retail sector, has bought eight firms for around £290m this year, adding £370m to revenues. It said Valenciabased Tecnopacking, which distributes industrial packaging throughout Spain and Portugal, recorded revenues of €38m euros (£34m) last year.

Protection equipment suppliers AMFAS and Western Safety had combined revenues of C$16m period.

Russ Mould of AJ Bell said Bunzl is “one of just 27 FTSE 100 firms to have increased its dividend for all of the last 10 years consecutively and its streak of increases actually stretches back 24 years.”

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