Thu, 18 Nov 2021 | BUSINESS SALE
International distribution and services group Bunzl plc has continued its acquisition drive with deals for two UK firms. The takeovers of Durham-headquartered workwear and promotional clothing firm Workwear Express and Buckinghamshire packaging solutions company Hydropac are the group’s 12th and 13th acquisitions of 2021, respectively.
Workwear Express is a leading workwear provider in the UK, with a strong e-commerce operation and a broad range of customers. In the year ending March 2021, the company generated revenue of £29 million. The acquisition was completed around the end of October.
The acquisition of Hydropac, meanwhile, was completed earlier this month. The deal for the UK firm will complement and strengthen Bunzl’s existing Netherlands-based Coolpack business. Hydropac is focused on the rapidly growing online food delivery sector and generated £7 million in revenue last year.
Discussing the acquisitions, Bunzl CEO Frank van Zanten said: “Today’s announcement further highlights the continued success of our compounding strategy. The acquisitions of Workwear Express and Hydropac represent our 12th and 13th acquisitions this year, with our committed spend year to date higher than our spend in 2020, making it another successful year and one of the most acquisitive years in our history.”
“The acquisitions demonstrate the opportunities for growth in digital channels, with Workwear Express a strong online driven business and Hydropac a specialist in packaging products that support online focused customers.”
Bunzl’s acquisition drive, which has significantly diversified and strengthened its business model, has been a crucial factor in the company generating strong growth amid the challenges of the COVID-19 pandemic.
In its Q3 trading statement, released last month, the company reported that group revenue in the third quarter was up 7.8 per cent year-on-year at actual exchange rates and up 13 per cent at constant exchange rates. Its acquisitions, meanwhile, contributed 4.3 per cent revenue growth at constant exchange rates.
At that time, CEO van Zanten commented: “At our recent Capital Markets Day, as well as providing insights into the opportunity that sustainability presents to Bunzl, we highlighted the strength of our compounding strategy which has delivered strong shareholder returns for many years. [...] Our acquisition pipeline remains active, supported by the strength of our balance sheet.”
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