UPDATE 1-Bunzl eyes more buys as revenue rises

Fri Oct 19, 2012 3:13am EDT

* Q3 rev up 5 pct and 6 pct in year to date

* Trading in line with firm's expectations

* Buys Indigo Concept Packaging Ltd, eyes more acquisitions

LONDON Oct 19 (Reuters) - British distributor Bunzl posted a 5 percent rise in third quarter revenue and said it would continue its strategy of acquisitive-led growth with more buys this year.

Bunzl, which supplies supermarkets, hospitals and hotels with products ranging from carrier bags to toilet rolls, said trading had been in line with its expectations, with group revenue up 6 percent in the year to date.

Underlying revenue growth in its third quarter slowed from 4 percent in the first half to 2 percent, Bunzl said, a trend particularly felt in the group's largest region of North America, which it blamed on unfavourable exchange rates and lower prices for its resin-based products.

Shares in FTSE 100 listed Bunzl were down 3.4 percent to 1046.5 pence at 0706 GMT.

Bunzl, which makes around two thirds of its growth through small acquisitions, also said on Friday it had bought UK-based packaging firm Indigo Concept Packaging Ltd.

The group has completed seven acquisitions this year with annualised revenue of 163 million pounds and described its pipeline as promising.

The group said acquisitions had helped deliver a strong rise in revenue in Continental Europe despite a tough economic environment, with an improved operating margin boosting profit at its UK and Ireland business.

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