Bunzl plc (LON:BNZL), the specialist international distribution and services Group, has announced that it has signed an agreement to acquire Nisbets in the UK and Pamark in Finland.
Bunzl has signed an agreement to acquire an 80% stake in Nisbets and associated entities for an initial consideration of £339m. The purchase price will be settled in cash. Founded in 1983 by Andrew Nisbet, Nisbets is a highly respected omni-channel distributor of catering equipment and consumables in the UK & Ireland, Northern Europe and Australasia, offering an extensive product range including a wide range of own-brand products to foodservice customers. It has over 1,800 employees and an experienced management team that will remain with the Group post-acquisition, with Andrew Nisbet acting as a non-executive director and the family continuing to hold a minority interest in Nisbets. For the year ended 31 December 2023, Nisbets generated revenue of £4981 million with a profit before interest, tax and amortisation of £40.2 million on a pro-forma basis1,2 and total gross assets of £2421 million. An additional earn-out amount may be payable based on Nisbets’ financial performance in 2024. The transaction includes put / call options that enable Bunzl to acquire the remaining 20% stake in the future at a price based on Nisbets’ financial performance at the time of option exercise, subject to certain conditions. The transaction is subject to customary regulatory approvals and a further announcement will be made in due course following completion. 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.
In January, the Group signed an agreement to acquire its first business in Finland, Pamark. This anchor acquisition in Finland is expected to complete later this month and will increase the number of countries in which Bunzl operates to 33. Pamark is a leading distributor of cleaning & hygiene, healthcare, foodservice and safety products to a broad range of private and public sector customers in Finland. The company generated revenue of EUR 56 million (c.£49 million) in 2023.
Commenting on the acquisitions, Frank van Zanten, Chief Executive Officer of Bunzl, said:
“The acquisition of Nisbets is an exciting step for Bunzl. Andrew Nisbet has built a high-quality business, with a well-respected management team. The business is complementary to our operations in the catering equipment sector and will enhance our own brand offering and digital capabilities. Pamark is our first acquisition in Finland and provides us with a strong platform from which to grow our presence across multiple end market segments in the country, supporting further expansion of our footprint in the Nordic region. 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.”
| 1 Based on unaudited management accounts |
| 2 Profit before interest, tax and amortisation (before exceptional items) for the year ended 31 December 2023 is £35.5 million |
