Bunzl PLC on Tuesday said it has agreed on four acquisitions, as well as the sale of its UK healthcare division, to generate a ‘small cash inflow’.
The London-based distribution services company said it bought Toomac Ophthalmic & Solutions, a New Zealand-based opthamology product distributor, and agreed to acquire GRC, a Aussie distributor of medical technology devices, as part of its expansion of its healthcare business in the region.
For financial 2022, Toomac Ophthalmic & Solutions generated revenue of about £6 million, and GRC produced revenue of about £3 million respectively.
It also completed the acquisition of VM Footwear, a Czech personal protection equipment distributor, and PM Pack, a Danish packaging products distributor.
For financial 2022, VM Footwear produced revenue of about £13 million, while PM Pack produced revenue of about £16 million respectively.
The FTSE-100 company said it has agreed to sell its UK healthcare division to Mediq, a Dutch health care company. In 2021, the UK healthcare division generated £216 million of revenue.
It noted: ‘Together, these transactions are expected to be profit neutral to the group and will generate a small cash inflow. They reflect Bunzl’s ongoing discipline around returns-focused capital allocation and portfolio optimisation.’
No financial details for the deals were provided.
Bunzl Chief Executive Officer Frank van Zanten said: ‘The announced acquisitions are highly complementary, expand our product offering in each country, and all achieve double-digit margins, with their profits offsetting the expected profit contribution from the announced disposal.’
In October, Bunzl had reported revenue growth of 19% at actual exchange rates and 8.7% at constant exchange rates for the third quarter beginning June 30 from the last quarter. This compared to growth rates of 7.8% and 13% respectively for the same period last year.
Bunzl shares were down 0.4% at 2,820.00 pence each on Tuesday morning in London.
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