Bunzl expands operations and acquires two businesses
By Jenny McCall
08:59, 14 September 2021
London-based, distribution and outsourcing company, Bunzl plc, announced today that it has entered into an agreement to acquire the US based safety business and medical supplies distributor, McCue and online distributor of medical devices, Medshop, which is based in Australia.
US market
McCue, which has operations in Australia and Singapore, is based in Boston and distributes safety and asset protection solutions. Bunzl said that the deal will provide it with a “strong position in a fast-growing market segment.”
“Supported by a strong portfolio of innovative own brand solutions and smart products, McCue specialises in the distribution of products such as safety barriers, floor railings and bumpers, for use in warehouses and high footfall environments spanning sectors such as grocery and ecommerce,” the statement said.
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Double-digit growth
The acquisition, which is subject to competition clearance, is expected to complete later this year. Bunzl said that McCue has delivered strong double-digit growth for the last three years, which has mainly be driven growth in ecommerce-based distribution activities. McCue has generated $90 million (c.£65 million) of revenue in the 12 months to July 2021, mainly driven by the US market.
Bunzl is also seeking to acquire, Medshop, a manufacturer of medical supplies and devices to healthcare customers in Australia.
“The business has a strong digital platform and operations in Melbourne and in Singapore. MedShop generated revenue in 2020 of .£12 million. The acquisition completed in early September,” the statement said.
Exciting expansion
Commenting on the acquisitions, Frank van Zanten, Chief Executive Officer of Bunzl, said: "The acquisition of McCue represents an exciting expansion of our safety operations in North America and the UK. It is a high-quality business with a strong leadership team and track record, with good opportunities for further growth supported by innovation and international expansion. It demonstrates the range of important value-added products and services the Group can provide to customers and our continual focus on evolving our portfolio alongside sector trends.
“MedShop is a complementary business that builds on our capabilities in the Australian healthcare sector, allowing us to target an expanded customer base. The strength of the digitally focused leadership team supports the significant potential to grow the business in Australasia.”
Year to date, Bunzl has entered in to 10 acquisitions and says its balance sheet remains strong.
Bunzl's stock price was up 1.52% at £26.06 in early morning trading today.
“With a robust balance sheet, Bunzl has managed to rope in McCue to capitalise through the Australia and Singapore markets with the offerings including floor railings and safety barriers as businesses across the world resume operations on a higher scale for the first time in the pandemic era,” Kunal Sawhney, CEO , Kalkine Group told Capital.com
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