SUBSCRIBE

Breaking News on Food and Beverage Processing and PackagingWorldUSEurope

News > Supply Chain

Bunzl expands in South America and US

By Joe Whitworth , 11-Jan-2013
Last updated on 11-Jan-2013 at 11:12 GMT

Bunzl has acquired three companies including their first acquisition outside of Brazil in South America.

The distribution and outsourcing group sealed deals for Vicsa Safety SA in Chile and US-based firms Schwarz Paper Company and Destiny Packaging. The firm said total acquisition spending for 2012 was £270m adding aggregate annualised revenue of over £500m.

Bunzl acquired Schwarz Paper Company based in Chicago and operating from 14 locations, which is principally engaged in the provision of consumables and supply chain solutions for the non-food retail and grocery sectors.

Revenue of the acquired business in the year ended 30 September 2012 was $363m.

The company has also purchased Destiny Packaging in Monterey, California, a distributor of flexible packaging supplies, principally produce bags, to fruit and vegetable growers throughout California and Arizona. Revenue in the year ended 31 December 2011 was $45m and is expected to be $50m in 2012.

Business growth

Michael Roney, chief executive of Bunzl, said: “Schwarz Paper Company significantly increases the size of our non-food retail business and will further enhance the company’s market leading position in the grocery sector.

“Destiny Packaging complements both Cool-Pak and Netpak which we acquired in 2010 and 2011 respectively.

“Together these three businesses give us an increasing presence in the market of innovative packaging solutions for both growers and food retailers in North America.”

Bunzl bought Vicsa Safety SA and its subsidiaries based in Peru, Argentina, Colombia and Mexico, which specialise in the sourcing and sale of personal protection equipment.

New markets

The aggregate revenue of Vicsa in the year ended 31 December 2011 was $51m and is expected to be $60m in 2012 with the business in Chile accounting for more than half of total revenue.

Roney added: "The acquisition of the Vicsa group of companies is an exciting development for us as it represents our first acquisition in South America outside of Brazil and provides Bunzl with a first entry into five high growth safety markets.

“The business has a quality own brand range of products which will expand and strengthen the company’s product offering in this market sector.”

Bunzl is a supplier of goods to grocery stores, supermarkets, retail chains, convenience stores, food wholesalers, ethnic grocers and organic food outlets.

Products include food packaging, films, labels, counter-service packaging, foodservice disposables, take-out food packaging, first aid products and cleaning and hygiene supplies.

Subscribe to our FREE newsletter

Get FREE access to authoritative breaking news, videos, podcasts, webinars and white papers. SUBSCRIBE