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.

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