Bunzl makes third acquisition of 2013, updates on Q1

FTSE 100-listed distribution and outsourcing group Bunzl has made its third acquisition of the year, purchasing Michael Davies and Associates (MDA), a UK-based businesses engaged in the procurement and fulfilment of promotional products and marketing point of sale materials for a variety of customers.

Michael Roney, Chief Executive of Bunzl, said the acquisition of MDA was "an exciting development for us as it extends our service offering in the retail and hospitality sectors in the UK".

The news came as the company reported that its revenue and operating margins have been consistent with expectations, with revenue up 10% in the first quarter compared to the same period last year.

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This was due to underlying revenue growth of about 2.0%, with all of the business areas showing growth, and the positive impact from acquisitions, the company explained.

In a statement the group said: "There has been no significant change in Bunzl's financial position during the period and the group continues to have substantial funding headroom available.

"Bunzl's strong cash flow and balance sheet, together with a promising acquisition pipeline, should continue to give the group opportunities to consolidate the markets in which it operates and deliver further growth."

The share price rose 0.87% to 1,282p by 08:23 Wednesday.

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