Shares in distribution company Bunzl PLC (LSE:BNZL) advanced on news of a new deal with Walmart, its largest customer by revenue.
According to Reuters, Bunzl has been working with Walmart for over 20 years and has been in negotiations with the US supermarket giant since last summer.
Bunzl has agreed new contract terms to provide Walmart with value-added distribution services across the US.
There is no material change to revenue and profit attributable to the contract, but the agreed terms will “significantly reduce Bunzl's sensitivity to product and operating cost movements”, the company said in a statement.
"I am pleased to announce the continuation of this long-standing customer partnership, with this collaboration highlighting the strength of our customer-focused proposition,” said Bunzl chief executive officer Frank van Zanten.
Bunzl shares were up 1.82% at 3,034.36p in late morning trade, having reached a high of 3,070p earlier.