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Bunzl buys Monte Package and QS Nederland, posts quarterly revenue growth

Bunzl reported a 7% increase in first quarter revenue and said overall trading has been in line with expectations

Bunzl PLC (LON:BNZL) said on Wednesday that it has bought US-based Monte Package Company and Netherlands business QS Nederland for an undisclosed sum.

Monte Package Company is a Michigan-based distributor of packaging products to fresh food growers while QS Nederland provides hygiene services for bathrooms to the government, healthcare and food service sectors.

"The purchase of Monte has further enhanced our business in North America serving the agriculture sector while the acquisition of QS complements and extends our existing cleaning & hygiene supplies business in the Netherlands,” said chief executive Frank van Zanten.

Alongside the announcement, Bunzl reported a 7% increase in revenue for the first quarter and said overall trading has been in line with expectations. At constant exchange rates, revenue increased 14%.

READ: Bunzl delivers a 13% jump in full-year pre-tax profit boosted by recent acquisitions, weaker pound

Underlying revenue growth was driven by winning further business in grocery despite lower margins.

Bunzl also said Patrick Larmon will be stepping down as chief executive of the North America business at the end of the year after 14 years in the role.

James McCool, the chief financial officer of the North America arm, will succeed Larmon.

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