Specialist international distribution and services group, Bunzl, has signed an agreement to acquire a business in Poland and also acquired a company in the Netherlands.

Bunzl, which lists on the London Stock Exchange and is a constituent of the FTSE 100 Index, confirmed the acquisition in Poland is its first in the country and, upon completion, will increase the number of countries the group operates in to 32.

London-headquartered Bunzl is the largest value-added distributor in the world in its market sectors, with operations across the UK and Ireland as well as in Europe, the Americas and Asia Pacific. The group employs 21,000 people and generated revenue of £12bn in 2022.

In July, the group signed an agreement to acquire Safety First, one of the largest distributors of personal protective equipment products in Poland to a range of end markets. It marks Bunzl’s anchor acquisition in Poland, achieving its first entry into the country, which had been a key target for expansion. Safety First generated PLN 121m (£23.2m) of revenue in 2022.

Also in July, Bunzl acquired EcoTools.nl, a Dutch specialist online distributor of tool accessories and industrial consumables to customers across the Benelux region that generated revenue of €20m (£17.2m) in 2022.

“I am pleased to announce two more additions to the Bunzl family today, taking our total to 12 acquisitions announced so far this year,” said Bunzl CEO, Frank van Zanten. “I am particularly pleased that the acquisition of Safety First will be Bunzl’s first in Poland, increasing the total number of countries that we operate in to 32.

“EcoTools is a fast-growing online distributor, which complements other online-focused businesses within our portfolio and further strengthens the group’s digital capabilities.

“Our acquisition momentum has been strong this year and our total committed spend year-to-date is now more than £350m. We have significant headroom to continue to self-fund value-accretive acquisitions and our pipeline remains active.”

Commenting, equity analyst at Hargreaves Lansdown, Matt Britzman, noted that Bunzl generates most of its revenue and profit outside the UK, and stated that “it’s not the economic conditions at home that turn the dial”.

“Acquisitions remain key to the Bunzl story, with £350m committed so far this year,” Britzman added. “Strong cash generation underpins self-funded growth and the 12 acquisitions announced so far this year highlight the intent.

“The announced acquisition in Poland marks the group’s first foray into the region, one that’s previously been on the radar. The protective equipment distributor fits nicely in with Bunzl’s model and should give a platform to build on in the region.”

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