International distribution and outsourcing group Bunzl has entered into an unconditional agreement to acquire a business in the UK and has completed the acquisition of a business in Australia.
Bunzl has agreed to acquire the business of Cannon Consumables from OCS Group UK Limited. Operating from four locations, Cannon Consumables is principally engaged in the supply of cleaning and hygiene consumable products to OCS as well as to a number of other customers throughout the UK. Revenue for the year ending 31 March 2011 is forecast to be 16 million pounds sterling and the gross assets to be acquired are estimated to be 2 million pounds sterling. Completion of the acquisition is expected to take place at the end of March following a period of employee consultation.
At the beginning of March, Bunzl acquired the business of Omega Hospitality Suppliers Pty Limited. Based in New South Wales, Australia, Omega is principally engaged in the supply of catering equipment and disposables to contract caterers, hotels and other foodservice customers. Revenue in year ended 30 June 2010 was AUD$5.4 million and the gross assets acquired are estimated to be AUD$1.2 million.
Commenting on the acquisitions, Bunzl CEO Michael Roney, said, “The acquisition of Cannon Consumables is an excellent addition to our cleaning and hygiene supplies business in the UK and will expand our business in this sector. Omega is also a successful business that will allow us to penetrate further into the catering equipment and disposables market in New South Wales and Queensland. We are pleased to welcome both companies to the Group.”