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Bunzl to make further acquisitions in the US and Ireland
Bunzl has entered into agreements to acquire a US-based safety equipment business with operations in Central and South America, Canada and Europe, and a flexible packaging distributor in Ireland.
MCR Safety, which is based in Memphis, Tennessee, is engaged in the distribution of a variety of largely own-brand personal protection equipment and other safety products to distributors operating in a number of end user markets.
In addition to the main US facility in Memphis and another in Arkansas, the business has operations in Mexico, Canada, the UK, the Netherlands, Colombia and Costa Rica. The products supplied are principally gloves, eye protection and workwear.
In 2019, the aggregate revenue for the businesses to be acquired, which overall trade at well above the North America business area average operating margin, was US$248 million. Approximately 80% of the revenue relates to sales in the US. It is expected that the acquisition will be completed within the next few days.
Abco Kovex is a distributor of flexible packaging based in Dublin, Ireland but with operations also in the UK and is principally engaged in the sale of items such as stretchfilm, polythene and paper packaging and pallet wrap to a variety of end users in the food, construction, packaging, foodservice and pharmaceutical sectors. Revenue in 2019 was $23 million. Completion of the acquisition is subject to clearance of the transaction by the Irish competition authority.
"The acquisition of MCR Safety is an important development for Bunzl," says Frank van Zanten, chief executive officer of Bunzl. "It is a high quality business with a strong leadership team and well established portfolio of own brand products which will complement our existing product range and significantly strengthen and expand our safety operations both in the US and elsewhere.
"The proposed acquisition of Abco Kovex will also complement our existing operations as it will enhance our product offering and expand our customer base both in Ireland and the UK which in turn will allow some cross-selling opportunities. With an experienced and knowledgeable management team, the business differentiates itself through continuous product innovation with a focus on sustainability.
"We look forward to welcoming both businesses and their employees to Bunzl."
27th August 2020