24 August 2020
BUNZL AGREES TO ACQUIRE US BASED SAFETY BUSINESS AND
FLEXIBLE PACKAGING DISTRIBUTOR IN IRELAND
Bunzl plc, the specialist international distribution and services Group, today announces that it has entered into agreements to acquire a US based safety business and a flexible packaging distributor in Ireland.
MCR Safety, which is based in Memphis, Tennessee, is engaged in the distribution of a variety of largely own brand personal protection equipment and other safety products to distributors operating in a number of end user markets. In addition to the main US facility in Memphis and another in Arkansas, the business has operations in Mexico, Canada, the UK, the Netherlands, Colombia and Costa Rica. The products supplied are principally gloves, eye protection and workwear.
In 2019, the aggregate revenue for the businesses to be acquired, which overall trade at well above the North America business area average operating margin, was US$248 million. Approximately 80% of the revenue relates to sales in the US. It is expected that the acquisition will be completed at the end of August 2020.
Abco Kovex is a distributor of flexible packaging based in Dublin, Ireland but with operations also in the UK and is principally engaged in the sale of items such as stretchfilm, polythene and paper packaging and pallet wrap to a variety of end users in the food, construction, packaging, foodservice and pharmaceutical sectors. Revenue in 2019 was €23 million. Completion of the acquisition is subject to clearance of the transaction by the Irish competition authority.
Commenting on the proposed acquisitions, Frank van Zanten, Chief Executive Officer of Bunzl, said:
"The acquisition of MCR Safety is an important development for Bunzl. It is a high quality business with a strong leadership team and well established portfolio of own brand products which will complement our existing product range and significantly strengthen and expand our safety operations both in the US and elsewhere.
The proposed acquisition of Abco Kovex will also complement our existing operations as it will enhance our product offering and expand our customer base both in Ireland and the UK which in turn will allow some cross-selling opportunities. With an experienced and knowledgeable management team, the business differentiates itself through continuous product innovation with a focus on sustainability.
We look forward to welcoming both businesses and their employees to Bunzl."
Frank van Zanten, Chief Executive Officer
Richard Howes, Chief Financial Officer
Tel: +44 (0)20 7725 5000
Tel: +44 (0)20 7353 4200
This information is provided by RNS, the news service of the London Stock Exchange
. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom
. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact firstname.lastname@example.org
or visit www.rns.com
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange