Bunzl wraps up deals for two firms as its global march continues

At the same time as it reported half-year revenues of nearly £3bn, the packaging and distribution firm said it is buying TFS, a Northamptonshire-based promotional material supplier, as well as Mexico’s Espomega, which supplies safety gloves and protective clothing.

Underlying profits for the first six months of 2013 were up 12 per cent to £167.6m and shares rose more than two per cent, as the group increased its interim dividend by 14 per cent and said more acquisitions were in its sights.

It is the latest chapter in the relentless expansion of the UK-based conglomerate, which began life as a Bratislava haberdashery in the nineteenth century before moving to Vienna and then London, and diversifying.

The scale of its grocery business – including films, labels, and counter-service packaging for a number of supermarkets – means it is part of the fabric of everyday life. Bunzl also has a large food service division supplying food packaging, napkins, and disposable tableware to restaurants, caterers and the leisure indus- try.

Its healthcare arm – one of a number of other business areas – produces gloves, aprons, bandages, face masks and gowns for hospitals, retirement homes and doctors’ surgeries.

Bunzl has spent £203m on its expansion programme so far this year, including the latest purchases of TFS (The Fulfilment Store) and Espomega.

TFS, which is based in Rugby, supplies promotional material and point-of-sale display products for customers as diverse as BP, Wrigley and Amnesty International.

Its revenues for 2012 were £8m while Espomega is expecting a figure of £28m for the current year.

The acquisitions add to Bunzl’s purchase earlier this year of Blackburn-based MDA, which supplies promotional products to food and drink companies, as well as a series of international deals.

Chief executive Michael Roney said that, while the economic outlook remained challenging in some markets, the group was well-positioned for continued growth throughout the year.

He added: “We have a promising acquisition pipeline and have had an encouraging start to the second half of 2013 with the announcement today of two acquisitions.”

Bunzl has operations based in Leeds, Sheffield and Castle- ford.