Ever-acquisitive outsourcing group Bunzl said it is eyeing yet another spate of deals today as it passed the 200 acquisition mark with the purchase of two Brazilian and Spanish safety distributors.
In a statement this morning, the FTSE 100 London-based firm said it had struck two deals to buy Leal Equipamentos de Proteção, a specialised safety distributor in Brazil, and Irudek, a safety and personal protective equipment maker based in Spain.
The two deals mean Bunzl has now made more than 200 acquisitions since 2004 in a relentless 19 year dealmaking drive. The group said its acquisitions had driven approximately two thirds of revenue growth over the last 10 years.
Bunzl boss Frank van Zanten said today the firm would now look to double down on dealmaking in the years ahead.
“This is a significant milestone to have reached and demonstrates our ability to successfully execute and integrate value accretive acquisitions as part of our compounding growth strategy,” he added.
“Our pipeline is active and our balance sheet remains strong, and we see significant opportunities for further acquisition growth to supplement our resilient organic growth.”
He added that the two new deals would bolster its offer within the safety sector with “strong own brand portfolios” and healthy margins. Brazilian Leal Equipamentos de Proteção generated revenues of £34m in 2022 while Irudek made £15m.
Profits at Bunzl were delivered a boost on the back of price hikes in 2022, with the firm in February reporting a 11.6 per cent rise to £634.6m for the full year.
Shareholders also bagged a 30th consecutive rise in dividend payouts, with the board recommending a 2022 final dividend of 45.4p per share, up ten per cent last year.