Bunzl PLC Acquisition (5663L)
July 20 2017 - 1:00AM
UK Regulatory
TIDMBNZL
RNS Number : 5663L
Bunzl PLC
20 July 2017
20 July 2017
BUNZL ANNOUNCES PROPOSED ACQUISITION IN FRANCE AND
PURCHASE OF BUSINESS IN THE UK
Bunzl plc, the international distribution and outsourcing Group,
today announces that it has made a binding offer for the
acquisition of a group of businesses in France and has also
purchased a marketing services business in the UK.
Hedis, which trades through a number of subsidiaries across
France, is engaged in the sale and distribution of cleaning &
hygiene related products to a variety of end user customers,
principally in the public, healthcare, foodservice and cleaning
sectors, as well as to some redistributors. Two other businesses,
Comptoir de Bretagne and Générale Collectivités, distribute light
catering equipment and tableware to a similar fragmented customer
base in France.
In 2016 the aggregate revenue for the businesses to be acquired,
which trade at above the Continental Europe business area average
operating margin, was EUR155 million, of which EUR131 million
related to Hedis and EUR24 million related to Comptoir de Bretagne
and Générale Collectivités. If acquired, Bunzl expects to realise a
number of synergies, principally from purchasing savings.
The acceptance of the Company's offer is subject to the
completion of a consultation process with the relevant works
councils of the target companies which is expected to be initiated
shortly. Subject thereto, it is anticipated that the final sale and
purchase documentation would be entered into and completion of the
acquisition would take place towards the end of the year, subject
to the approval of the transaction by the French competition
authorities.
Bunzl has also recently acquired Pixel Inspiration, a marketing
services business in the UK which specialises in the digital
signage sector. As well as providing project based installations
for multi-site retailers and financial institutions, Pixel is also
engaged in the provision of management and consultancy services
related to the usage of such installations. Revenue in 2016 was
GBP7 million.
Commenting on these developments, Frank van Zanten, Chief
Executive of Bunzl plc, said:
"The proposed purchase of Hedis, Comptoir de Bretagne and
Générale Collectivités is an important acquisition for Bunzl as
together they will further expand our existing cleaning &
hygiene operations in France and extend our business there into the
catering equipment sector for the first time. I am absolutely
delighted that we have the opportunity for both groups to work
together as we look to grow and develop in the large and fragmented
French market.
The acquisition of Pixel Inspiration represents a strategic
development for our marketing services business in the UK by
extending our existing marketing fulfilment proposition into
digital signage which is a market that is expected to grow
significantly over the coming years.
I am pleased that the level of acquisition activity has picked
up in 2017. So far this year Bunzl has acquired, or agreed in
principle to acquire, 10 businesses for a total committed spend of
approximately GBP530 million."
This announcement contains inside information.
Enquiries:
Bunzl plc Tulchan
Frank van Zanten, Chief David Allchurch
Executive Martin Robinson
Brian May, Finance Director Tel: +44 (0)20 7353 4200
Tel: +44 (0)20 7725 5000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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