Bunzl PLC Acquisition (6131L)
14 September 2021 - 4:00PM
UK Regulatory
TIDMBNZL
RNS Number : 6131L
Bunzl PLC
14 September 2021
14 September 2021
BUNZL AGREES TO ACQUIRE US BASED SAFETY BUSINESS AND
HEALTHCARE DISTRIBUTOR IN AUSTRALASIA
Bunzl plc, the specialist international distribution and
services Group, today announces that it has entered into agreements
to acquire a US based safety business and a medical supplies
distributor with operations in Australia and Singapore.
McCue Corporation ("McCue"), based in Boston, Massachusetts, is
a leading business in the distribution of safety and asset
protection solutions, and provides Bunzl with a strong position in
this fast growing market segment. Supported by a strong portfolio
of innovative own brand solutions and smart products, McCue
specialises in the distribution of products such as safety
barriers, floor railings and bumpers, for use in warehouses and
high footfall environments spanning sectors such as grocery and
ecommerce. The business has operations in Massachusetts, Texas and
California, as well as in the UK and other international
markets.
The business has delivered very strong double digit annual
growth over the last three years. This trajectory continues,
supported by the growth in ecommerce-based distribution activities,
the importance of health and safety measures in operating
environments and the increasing prevalence of higher value
warehouse equipment which increases the importance of asset
protection. In the 12 months to July 2021 McCue generated revenue
of $90 million (c.GBP65 million), predominantly in the US. The
business has an operating margin above the level typically
experienced in the Group's safety businesses. The acquisition is
subject to competition clearance in the US and is expected to
complete later this year.
MedShop is an online distributor of medical supplies and devices
to a diverse range of healthcare customers, predominately in
Australia. The business has a strong digital platform and
operations in Melbourne and in Singapore. MedShop generated revenue
in 2020 of AUD 22 million (c.GBP12 million). The acquisition
completed in early September.
Commenting on the acquisitions, Frank van Zanten, Chief
Executive Officer of Bunzl, said:
"The acquisition of McCue represents an exciting expansion of
our safety operations in North America and the UK. It is a high
quality business with a strong leadership team and track record,
with good opportunities for further growth supported by innovation
and international expansion. It demonstrates the range of important
value-added products and services the Group can provide to
customers and our continual focus on evolving our portfolio
alongside sector trends.
MedShop is a complementary business that builds on our
capabilities in the Australian healthcare sector, allowing us to
target an expanded customer base. The strength of the digitally
focused leadership team supports the significant potential to grow
the business in Australasia.
Year to date we have now agreed ten acquisitions, with a
combined committed spend of approximately GBP390 million. Our
balance sheet remains strong, providing opportunity to self-fund
further acquisitions alongside an active pipeline and ongoing
discussions."
Enquiries:
Bunzl plc Tulchan
Frank van Zanten, Chief Executive Martin Robinson
Officer Suniti Chauhan
Richard Howes, Chief Financial Tel: +44 (0)20 7353 4200
Officer
Tel: +44 (0)20 7725 5000
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END
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