LONDON, April 16 British business supplies
distributor Bunzl announced three acquisitions for a
total of 80 million pounds ($134 million) on Wednesday after
reporting a 5 percent rise in first- quarter revenue.
The group said it had acquired protective footwear supplier
Tecno Boga in Chile, supplies distributor Plast Tech Enterprises
in the United States and Nelson Packaging Supplies in New
Zealand as part of its strategy to expand into new countries.
Bunzl, which distributes products such as carrier bags, food
packaging and hygiene products, said in February it was looking
for more companies to buy after acquisitions helped its pretax
profit rise 17 percent last year, beating forecasts.
The acquisitions represent a significant expansion of
Bunzl's operations in Chile and add new capabilities and scale
to its existing businesses in the United States and New Zealand,
Chief Executive Michael Roney said in a statement.
The company spent 295 million pounds on acquisitions in
2013, its highest level since 2004. Analysts estimate Bunzl may
spend around 300 million pounds per year on acquisitions for the
next four years.
Group operating profit rose by 10 percent in the first
quarter, and revenue growth was at a similar level to the same
period last year but the company warned its results had been
negatively affected by foreign exchange rates.
Shares in Bunzl were up 1.3 percent to 1,595 pence at 0705
($1 = 0.5977 British Pounds)
(Reporting by Li-mei Hoang; Editing by Erica Billingham and