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Bunzl shares dip after outsourcer unveils acquisitions, U.K. healthcare unit sale

Published 12/20/2022, 03:26 AM
Updated 12/20/2022, 03:28 AM
© Reuters.

By Scott Kanowsky 

Investing.com -- Bunzl PLC (LON:BNZL) has agreed to acquire four businesses and sell its U.K. healthcare unit, according to a statement from the British outsourcing company on Tuesday.

The string of purchases includes the acquisition of New Zealand-based ophthalmology products distributor Toomac, Australian medical technology devices business GRC, Czech personal protection equipment maker VM Footwear, and Danish packaging products firm PM Pack.

Meanwhile, Bunzl will also offload its British healthcare division - which generated £216 million ($1= £0.8225) in revenue in 2021 - to Dutch peer Mediq.

Taken together, the transactions are expected to be profit neutral and generate a small cash inflow, the group added. Bunzl said the moves reflect its focus on capital returns and portfolio optimization.

"The announced acquisitions are highly complementary, expand our product offering in each country, and all achieve double digit margins, with their profits offsetting the expected profit contribution from the announced disposal," said Bunzl chief executive officer Frank van Zanten.

Shares in Bunzl fell by just over 1% in early trading.

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