Bunzl on acquisition trail again as it buys French, UK firms

International distribution and outsourcing group Bunzl said it has made a binding offer to buys a group of businesses in France and had also bought a marketing services business in the UK for undisclosed sums.

UK-based Pixel Inspiration is a marketing services business in the UK which specialises in the digital signage sector.

French group Hedis sells and distributes cleaning & hygiene related products to the public, healthcare, foodservice and cleaning sectors, as well as to some redistributors, Bunzl said.

Two other businesses, Comptoir de Bretagne and Générale Collectivités, distribute light catering equipment and tableware to a similar fragmented customer base in France, it added.

Aggregate revenues in 2016 were €155m. Bunzl said it expected to realise a number of synergies, “principally from purchasing savings”.

“The acceptance of the company's offer is subject to the completion of a consultation process with the relevant works councils of the target companies which is expected to be initiated shortly,” Bunzl said in a statement, adding that it expected to conclude the deal towards the end of the year.

Pixel provides project based installations for multi-site retailers and financial institutions and is also engaged in the provision of management and consultancy services related to the usage of such installations. Revenue in 2016 was £7m.

“The acquisition of Pixel Inspiration represents a strategic development for our marketing services business in the UK by extending our existing marketing fulfilment proposition into digital signage which is a market that is expected to grow significantly over the coming years,” said chief executive Frank van Zanten.

“So far this year Bunzl has acquired, or agreed in principle to acquire, 10 businesses for a total committed spend of approximately £530m."