Bunzl plc (LSE:BNZL) signed an agreement to acquire 80% stake in Nisbets Plc for approximately £340 million on February 26, 2024. Post-acquisition, Andrew Nisbet acting as a non-executive director and the family continuing to hold a minority interest in Nisbets. The purchase price will be settled in cash.

An additional earn-out amount may be payable based on Nisbets' financial performance in 2024. The transaction will be financed using Bunzl's existing cash resources and existing debt facilities, and is expected to be meaningfully accretive to EPS in the first full year following completion. 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.

For the year ended December 31, 2023, Nisbets has generated revenue of £498 million and EBIT of £40.2 million and total gross assets of £242 million. The transaction is subject to customary regulatory approvals and a further announcement will be made in due course following completion. As on April 5, 2024, the transaction has been notified to the Competition and Consumer Protection Commission for approval.

As of April 24, 2024, the UK Competition and Markets Authority has indicated in a response to a briefing paper from Bunzl that it has no further questions on the transaction. The acquisition is still subject to clearance by the Irish competition authority which is expected during the first half of 2024. Sally Wokes, Richard Hilton, Kerry O'Connell, Sarah Osprey, Rob Sumroy, Rebecca Cousin, Daniel Schaffer, Phil Linnard, John Nevin, Matthew Tobin, and David Shone of Slaughter and May acted as legal advisor to Bunzl plc.

J.P. Morgan Securities plc acted as financial advisor to Bunzl plc. Antony Walsh, Jon Gill, Ceri-Ann McGraa, Claire Morgan and Helen Mackey from Eversheds Sutherland acted as legal advisors to Nisbets Plc.