BUNZL PLC, a specialist international distribution and services Group, has announced the acquisition of Nisbets in the UK and Pamark in Finland. The agreement includes the acquisition of an 80% stake in Nisbets for an initial consideration of £339m, with the potential for an additional earn-out amount based on Nisbets' financial performance in 2024. The transaction will be financed using the Group's existing cash resources and existing debt facilities and is expected to be meaningfully accretive to EPS in the first full year following completion.
Nisbets, founded in 1983, is a respected omni-channel distributor of catering equipment and consumables in the UK & Ireland, Northern Europe, and Australasia. It has over 1,800 employees and generated revenue of £4981 million in 2023. The acquisition is seen as complementary to Bunzl's operations in the catering equipment sector and will enhance its own brand offering and digital capabilities.
In addition, Bunzl has signed an agreement to acquire its first business in Finland, Pamark, a leading distributor of cleaning & hygiene, healthcare, foodservice, and safety products. This acquisition is expected to increase the number of countries in which Bunzl operates to 33 and provide a strong platform for further expansion in the Nordic region.
Frank van Zanten, Chief Executive Officer of Bunzl, commented, "This is an excellent start to 2024, maintaining the strong acquisition momentum of recent years. Our pipeline remains active, supported by the strength of our balance sheet."
The acquisition of Nisbets is subject to customary regulatory approvals, and a further announcement will be made following completion. The announcement also contains forward-looking statements regarding the financial condition, results of operations, and business of Bunzl, emphasizing the risks and uncertainties associated with such statements.