Bunzl acquires US distribution firm as revenues head upwards

GLOBAL distribution and outsourcing company Bunzl said yesterday it had bought Service Paper Company in the United States while separately issuing an upbeat trading statement.

Service Paper distributes disposable supplies to the grocery, food service, food processor and industrial packaging sectors throughout the Pacific Northwest.

Revenues of the business acquired for the year ended 31 December 2011 was $61m (£39.1m) and the gross assets purchased are estimated to be worth $18m.

Chief executive Michael Roney said: “Service Paper is an excellent business with a reputation for providing high levels of customer service which will complement and expand our existing business in the region.”

Meanwhile the firm said it had seen revenue grow by around seven per cent over the past six months. It attributed much of the rise to recent acquisitions.

It added that its margins had also improved thanks to its purchases of other companies.

Bunzl has bought five businesses in the last year worth a total of £130m.