Bunzl to acquire majority £339m stake in Nisbets
Bunzl is set to acquire an 80% stake in Nisbets and associated entities for an initial consideration of £339m.
The purchase price will be settled in cash in a deal that places Nisbets at an equity value of over £500m.
The agreement coincides with Bunzl's acquisition of Pamark in Finland.
Nisbets, a distributor of catering equipment in the UK & Ireland, Northern Europe and Australasia, was founded by Andrew Nisbet in 1983 and has since hired over 1,800 employees.
In August 2022, Nisbets acquired barware supplier Beaumont for an undisclosed sum.
For the year ended 31 December 2023, the foodservice distributor generated profit before interest, tax and amortisation of £40.2m.
Peter Sephton, chairman of Nisbets, said: "We are delighted to announce this agreement with Bunzl today. Based on our extensive engagement with them over the past months, it became clear that both parties have a shared vision and a commitment to customers and colleagues that will build on Nisbets's heritage and growth strategy.
"The acquisition will help drive our strategy for growth by bringing both strategic and operational value to Nisbets. We are looking forward to working together to execute this strategy and to delivering the next phase of growth."
Frank van Zanten, chief executive officer at Bunzl, added: "The acquisition of Nisbets is an exciting step for Bunzl. Andrew Nisbet has built a high-quality business, with a well-respected management team. The business is complementary to our operations in the catering equipment sector and will enhance our own brand offering and digital capabilities."
Sephton will remain chairman and chief executive, while founder Nisbet will serve as non-executive director on the Nisbets Advisory Board within Bunzl.
It is expected that Nisbets will "continue to operate separately from Bunzl" as Nisbets' leadership team will "remain in place".
The stake has been sold by Key West Holdings and the subject is subject to customary regulatory approval.
Bunzl, a British distribution and outsourcing company, was founded in 1854 and incorporated in 1940.
