International distribution and outsourcing group Bunzl plc has acquired a business in the U.K. and agreed to acquire a business in Mexico.
Espomega, Moterrey, Mexico, is a redistribution business supplying safety products, including gloves and protective clothing, throughout Mexico. Revenue for 2013 is expected to beMXN550 million (US$41.2 million).
Rugby, U.K.-based TFS (The Fulfilment Store) procures and fulfills promotional products and marketing point of sale materials for customers in the U.K. across various market sectors. Revenue for 2012 was £8 million (US$12.4 million).
“The acquisition of Espomega will expand significantly our safety business in Mexico being a sector we entered there with the purchase of Vicsa Safety at the end of last year," said Chief Executive Michael Roney. "… Following the purchase of MDA earlier this year, the acquisition of TFS will further strengthen our business in the U.K. which is focused on marketing and point of sale materials and extend our service capabilities in these types of products into additional market sectors.”
Bunzl reported sales for the six months ended June 30 of £3 billion (US$4.7 billion), up 13 percent over the same period a year ago. Excluding the impact of currency exchange, sales increased 11 percent. Profit before tax grew 9 percent to £129.4 million (US$201.1 million).
In North America revenue rose 17 percent (14 percent excluding exchange rates) due to good organic growth and the impact of acquisitions completed last year, while operating profit increased 15 percent (12 percent excluding exchange rates).
Revenue in Continental Europe rose 6 percent (2.5 percent excluding exchange rates) as a result of organic growth and the impact of acquisitions made last year, and operating profit was up 5 percent (1.5 percent excluding exchange rates).
In U.K. & Ireland revenue increased by 1 percent due to the impact of relatively small acquisitions. Operating profit rose 8 percent as a result of an improvement in gross margins.
In Rest of the World revenue increased 36 percent (38 percent excluding exchange rates) and operating profit was up 44 percent (48 percent excluding exchange rates) due to both strong organic revenue growth and the effect of a number of acquisitions completed in 2012 and the first half of 2013.
