26
February 2024
BUNZL ANNOUNCES THE
ACQUISITIONS OF NISBETS IN THE UK AND FIRST ACQUISITION IN
FINLAND
Bunzl plc, the specialist
international distribution and services Group, today
announces that it has signed an agreement to
acquire Nisbets in the UK and Pamark in Finland.
Bunzl has signed an agreement to
acquire an 80% stake in Nisbets and associated entities for an
initial consideration of £339m. The purchase price will be settled
in cash. Founded in 1983 by Andrew Nisbet, Nisbets is a highly
respected omni-channel distributor of catering equipment and
consumables in the UK & Ireland, Northern Europe and
Australasia, offering an extensive product range including a wide
range of own-brand products to foodservice customers. It has over
1,800 employees and an experienced management team that will remain
with the Group post-acquisition, with Andrew Nisbet acting as a
non-executive director and the family continuing to hold a minority
interest in Nisbets. For the year ended 31 December 2023, Nisbets
generated revenue of £4981 million with a profit before
interest, tax and amortisation of £40.2 million on a pro-forma
basis1,2 and total gross assets of £2421
million. An additional earn-out amount may be payable based on
Nisbets' financial performance in 2024. The transaction includes
put / call options that enable Bunzl to acquire the remaining 20%
stake in the future at a price based on Nisbets' financial
performance at the time of option exercise, subject to certain
conditions. The transaction is subject to customary regulatory
approvals and a further announcement will be made in due course
following completion. The transaction will be financed using
the Group's existing cash resources and existing debt facilities,
and is expected to be meaningfully accretive to EPS in the first
full year following completion.
In January, the Group signed an
agreement to acquire its first business in Finland, Pamark. This
anchor acquisition in Finland is expected to complete later this
month and will increase the number of countries in which Bunzl
operates to 33. Pamark is a leading distributor of cleaning &
hygiene, healthcare, foodservice and safety products to a broad
range of private and public sector customers in Finland. The
company generated revenue of EUR 56 million (c.£49 million) in
2023.
Commenting on the acquisitions,
Frank van Zanten, Chief Executive Officer of Bunzl,
said:
"The acquisition of Nisbets is an
exciting step for Bunzl. Andrew Nisbet has built a high-quality
business, with a well-respected management team. The business is
complementary to our operations in the catering equipment sector
and will enhance our own brand offering and digital capabilities.
Pamark is our first acquisition in Finland and provides us with a
strong platform from which to grow our presence across multiple end
market segments in the country, supporting further expansion of our
footprint in the Nordic region. This is an excellent start to 2024,
maintaining the strong acquisition momentum of recent years. Our
pipeline remains active, supported by the strength of our balance
sheet."
1 Based on unaudited
management accounts
|
2 Profit before
interest, tax and amortisation (before exceptional items)
for the year ended 31 December
2023 is £35.5 million
|
Enquiries:
Bunzl plc
Frank van Zanten, Chief Executive
Officer
Richard Howes, Chief Financial
Officer
Tel: +44 (0)20 7725
5000
|
Teneo
Martin Robinson
Olivia Peters
Tel: +44 (0)20 7353 4200
|
The proposed acquisition of Nisbets
is a Class 2 transaction pursuant to the UK Financial Conduct
Authority's Listing Rules. The person responsible for arranging the
release of this announcement on behalf of Bunzl is Suzanne
Jefferies, Group Company Secretary.
This announcement should be read in
its entirety. In particular, you should read and understand the
information provided in the "Important Notices" section of this
announcement.
Important Notices
This announcement may contain
certain forward-looking statements, beliefs or opinions, with
respect to the financial condition, results of operations and
business of Bunzl. In particular, all statements that express
forecasts, expectations and projections with respect to future
matters, including trends in results of operations, margins, growth
rates, overall market trends, the impact of interest or exchange
rates, the availability of financing, anticipated cost savings and
synergies and the execution of Bunzl's strategy, are
forward-looking statements. Often, but not always, forward-looking
statements can be identified by the use of forward-looking words
such as "plans", "expects", "is expected", "is subject to",
"budget", "scheduled", "estimates", "forecasts", "goals",
"intends", "anticipates", "believes", "targets", "aims" or
"projects". Words or terms of similar substance or the negative
thereof, are forward-looking statements, as well as variations of
such words and phrases or statements that certain actions, events
or results "may", "could", "should", "would", "might" or "will" be
taken, occur or be achieved. By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that will occur in the future.
They are based on numerous assumptions regarding Bunzl's present
and future business strategies and the environment in which it will
operate in the future. There are a number of factors that could
cause actual results and developments to differ materially from
those expressed or implied by forward-looking statements. Any
forward-looking statements speak only as of the date they are made,
and Bunzl gives no undertaking to update any forward-looking
statements to reflect any changes in its expectations with regard
thereto or any changes to events, conditions or circumstances on
which any such statement is based. Bunzl and its directors accept
no responsibility to third parties in respect of any such
forward-looking statements. Readers are cautioned not to place
undue reliance on such forward-looking statements.
No statement in this announcement is
intended to be, nor may it be construed as, a profit forecast,
estimate or projection of future financial performance.