Bunzl (LON: BNZL) shares dipped Tuesday morning after it signed agreements to acquire four businesses and agreed to sell its UK healthcare division.
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The deals are expected to be profit neutral to the distribution company, generating a small cash inflow. The company’s UK healthcare division, which generated £216 million in revenue in 2021, will be sold to Mediq.
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In addition, Bunzl has acquired Toomac Ophthalmic & Solutions, a distributor of ophthalmology products in New Zealand, and GRC, a distributor of innovative medical technology devices in Australia. Bunzl said both companies specialise in surgical products and widen the offering in Bunzl’s healthcare business in the region, which has grown significantly over the last two years.
Furthermore, Bunzl also completed the acquisition of VM Footwear, a distributor of personal protection equipment based in the Czech Republic, and PM Pack, a distributor of packaging products in Denmark, primarily focused on food processor customers.
“Today’s announcement reflects Bunzl’s commitment to optimal capital allocation across the Group,” said Frank van Zanten, Chief Executive Officer of Bunzl. “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.”
Bunzl shares are currently down 0.7% at 2,812p per share.
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