Bunzl PLC (LSE:BNZL) said it has sold its UK healthcare division and bought four new businesses in a series of deals which are expected to be profit neutral and generate a small cash inflow for the business.
They reflect Bunzl's ongoing discipline around returns-focused capital allocation and portfolio optimisation, the company said.
The group has sold its UK healthcare arm, which in 2021 generated revenue of £216mln, to Mediq alongside the acquisitions of Toomac Ophthalmic & Solutions, a distributor of ophthalmology products in New Zealand, and GRC, an exclusive distributor of innovative medical technology devices in Australia.
Both businesses specialise in surgical products and broaden the offering in Bunzl's healthcare business in the region, which has expanded significantly over the last two years, the group noted,
The company has also bought VM Footwear, a distributor of personal protection equipment based in the Czech Republic, specialising in own-brand footwear throughout Central Eastern Europe which provides an entry into this category in the region.
Lastly, Bunzl has acquired PM Pack, a distributor of packaging products in Denmark, mainly focused on food processor customers which strengthens its foodservice offering in the country.
in a statement, Frank van Zanten, chief executive officer of Bunzl, said: "The announced acquisitions are highly complementary, expand our product offering in each country, and all achieve double-digit margins, with their profits offsetting the expected profit contribution from the announced disposal.”