(Alliance News) - Bunzl PLC on Tuesday said it has agreed to acquire US-based safety business McCue Corp and Australia-focused medical supplier MedShop.
Bunzl didn't provide the price of either acquisition but said it has spent a total of GBP390 million on ten purchases in the year to date. This is up from the GBP134 million it had said it had spent by the half-year stage.
London-based Bunzl is a distribution and outsourcing company operating in the hospitality, healthcare, retail and safety sectors, among others. It said its acquisition of Boston, Massachusetts-based McCue expanded its position in the fast-growing safety market.
"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 e-commerce," Bunzl said.
McCue has operations in the UK and international markets alongside its US bases in Massachusetts, Texas and California.
In the 12 months to July, McCue reported revenue of USD90 million.
Although the acquisition has yet to pass competition clearance in the US, Bunzl expects to complete the transaction later in the year.
The company also agreed to acquire Medshop Australia.
Medshop distributes medical supplies and devices to a wide range of customers via its strong digital platform, Bunzl said.
In 2020, the medical distributor - with operations in Melbourne, Australia and Singapore - generated revenue worth AUD22 million, or around GBP12 million.
"[In the] year to date we have now agreed ten acquisitions, with a combined committed spend of approximately GBP390 million. Our balance sheet remains strong, providing opportunity to self-fund further acquisitions alongside an active pipeline and ongoing discussions," added Chief Executive Frank van Zanten.
Bunzl reported spending GBP134 million on acquisitions in the first half of 2021, including the purchase of workwear distributor Proin Pinilla SL and PPE distributor Arprosa SA.
In the six months ended June 30, Bunzl reported revenue of GBP4.87 billion - slightly above the GBP4.85 billion booked a year prior. In the first half the company reported a pretax profit of GBP275.7 million, up 12% from GBP245.4 million.
Shares in Bunzl were trading up 1.1% at 2,595.00 pence each in London on Tuesday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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