Bunzl trading in line as acquisition trail continues

Distribution and outsourcing firm Bunzl said overall trading has been consistent with expectations as it announced two more acquisitions in Canada and Australia.

Distribution and outsourcing firm Bunzl said overall trading has been consistent with expectations as it announced two more acquisitions in Canada and Australia.

Bunzl has acquired McCordick Glove & Safety based near Toronto, Canada and Atlas Health Care in Adelaide, Australia. Bunzl did not disclose how much they paid for the acquisitions.

Chief Executive Michael Roney said the acquistions will enhance the group's product offering in safety and healthcare.

Including the two acquisitions announced today Bunzl has announced nine acquisitions year to date with annualised revenue from 2012 acquisitions of approximately £210m.

"The current environment for acquisitions remains positive," the group said in a trading update.

In its update for the 12 months ending December 31st 2012 Bunzl said overall group revenue growth for the year is expected to be around 6% at constant exchange rates, due to underlying revenue growth and the positive impact from acquisitions. Group operating margin is in line with the prior year.

Underlying revenue growth for the year is expected to be about 2.5% against a challenging comparative in the second half following a particularly robust performance in North America last year.

Bunzl said it has recently refinanced some of its debt facilities by raising $350m of fixed interest rate borrowings in the US private placement market with maturities ranging from seven to 11 years at an average interest rate of 3.4%.

The group said its strong cash flow and balance sheet should continue to enable it to seek opportunities to consolidate further in the markets in which it operates.

CJ

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

The rising dollar is proving bad news for most other assets – will it last?
Investment strategy

The rising dollar is proving bad news for most other assets – will it last?

Precious metals, stocks and pretty much every other asset has taken a tumble as the US dollar strengthens. Dominic Frisby looks at how long this trend…
23 Sep 2020
The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Can Rishi Sunak’s winter plan save the UK economy?
UK Economy

Can Rishi Sunak’s winter plan save the UK economy?

With his Winter Economic Plan, chancellor Rishi Sunak is hoping to support the economy through the dark months ahead as restrictions tighten again. Jo…
25 Sep 2020