In the news from UK stocks, Bunzl PLC (GB:BNZL) today announced that it has received a green light from the Irish regulator on its acquisition of the UK-based equipment supplier, Nisbets. Following approval from the Irish Competition and Consumer Protection Commission, the company also confirmed the completion of its acquisition.
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Bunzl’s shares opened higher in the early trading hours but are currently trading at a loss of 0.26%.
Bunzl is a distribution company that offers products and solutions across diverse sectors, including healthcare, grocery, and hygiene.
Bunzl Acquires Nisbets
Earlier this year, in February, Bunzl announced the acquisition of an 80% stake in Nisbets for £339 million in cash. The transaction also provides Bunzl with the ability to purchase the remaining 20% stake in the future. The price will be determined based on Nisbets’ financial performance at the time of execution.
Nisbets is a multi-channel distributor of catering equipment and consumables in the UK, Ireland, Northern Europe, and Australasia. It offers a diverse selection of own-brand products to hotels, restaurants, and bars. For the Fiscal Year ending on December 31, 2023, Nisbets recorded revenue of £4.981 billion. Its total gross assets stood at £2.421 billion.
With this acquisition, the company aims to strengthen its position in the catering equipment segment. Bunzl believes that Nisbets’ business aligns seamlessly with its operations and will enhance its digital capabilities.
Is Bunzl a Good Stock to Buy?
According to TipRanks’ consensus, BNZL stock has garnered a Hold rating based on two Buy, three Hold, and three Sell recommendations. The Bunzl share price target is 3,109.17p, which is 3% above the current trading level.
