Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Bunzl buys two companies, expects tax break in US

The company’s aggressive buying hasn’t slowed in the new year
Bunzl delivers with 2 more acquisitions
Delivering value for shareholders?

Bunzl PLC’s (LON:BNZL) shopping spree isn’t over yet.

The distribution and outsourcing group has delivered on an earlier promise to keep its purse open with the announcement Thursday of  two acquisitions: California-based Revco, a workplace-safety and personal-protection-equipment maker, and a deal for UK-based Aggora Group, a commercial catering supplier.

The two deals follow 11 acquisitions made in 2017 worth about £550mln.

READ: Bunzl reports third quarter revenue growth and plans to make further acquisitions

Financial terms were not disclosed but Bunzl said that Revco is expected to book sales of US$37mln for the full year ending December 2017, while Aggora booked £27mln for the year ended in March 2017.

Bunzl also updated its view on the effect of US tax-law changes on its US-based operations, indicating it expects a lower corporate tax rate of 24% for fiscal 2018. The company saw no effect for 2017.

Bunzl also announced that it has received an offer to sell OPM, a France-based distributor of Sodastream International Ltd. (NASDAQ:SODA) products. Terms of the deal were not provided, but the sale is expected to close in the first quarter of 2018.

Bunzl shares rose 2% to £20.45 in morning trading.

View full BNZL profile View Profile

Bunzl Timeline

Related Articles

Talent meter
March 07 2018
Underlying profits are up 20% year-on-year and net fee income should be around 17% higher
Ryanair plane
August 23 2018
Two new directors have been appointed, though the group is still looking for a replacement for chairman Iain Ferguson
Intellectual property sign
April 11 2018
The AIM-listed intellectual property group’s investments were worth £8mln as at the end of December 2017, helped by the additions of The Vaccine Group and water pollution tester Molendotech

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use