The Bunzl plc (LON: BNZL) share price gapped up 4.84% after the company announced two acquisitions in Poland and the Netherlands. Investors were excited by the two transactions in Poland and the Netherlands, as evidenced by the gap higher in Bunzl stock.
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The company acquired Safety First, a leading distributor of Personal Protective Equipment products in Poland to various end markets. The transaction is the first for Bunzl in Poland and will be the company’s anchor acquisition. Bunzl has wanted to expand its operations into Poland for a while before the latest transaction.
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The second company acquired by Bunzl is EcoTools.nl, a Netherlands-based specialist online distributor of tool accessories and industrial consumables to customers across the Benelux region. This company generated revenues worth EUR 20 million (c.£17 million) in 2022 and has very high triple-digit margins.
The Poland acquisition expanded Bunzl’s international footprint, now operating in 32 countries. However, the Netherlands’ acquisition was not its first in the country. Safety First generated revenues worth PLN 121 million (c.£22 million) in 2022.
Bunzl also released its earnings results for the six months ended 30 June 2023. The company generated revenues worth £5.91 billion, marking a 4.5% increase from the £5.65 billion recorded in H1 2022. The company’s adjusted operating profits were £438.3 million, a 6.5% increase from the £411.4 million generated in H1 2022.
The company noted that it had announced 12 acquisitions since the year began up to August. The company is committed to spending over £350 million on acquisitions this year and still has an active pipeline of potential acquisitions it could make by the end of 2023.
Frank van Zanten, Bunzl’s Chief Executive Officer, said: “I am pleased to announce two more additions to the Bunzl family today, taking our total to twelve acquisitions announced so far this year. I am particularly pleased that the acquisition of Safety First will be Bunzl's first in Poland, increasing the total number of countries that we operate in to 32. EcoTools is a fast-growing online distributor, which complements other online-focused businesses within our portfolio and further strengthens the Group's digital capabilities.”
Bunzl share price.
The Bunzl share price gapped up 4.84% to trade at 2858.0p, from Friday’s closing price of 2726.0p.
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