Bunzl (OTCPK:BZLF.Y) Earnings Call Presentation

Acquisition Strategy & Model - Bunzl's acquisition model supports long-term growth, contributing approximately 2/3 of Group revenue growth[11, 12] - Since 2004, Bunzl has committed approximately £6 billion in acquisitions, completing over 230 deals[11] - The company identifies over 1,300 potential acquisition targets, indicating significant growth opportunities in existing markets[16] - Bunzl's average deal size in the last five years is approximately £40 million, supplemented by less frequent larger acquisitions[19] Financial Performance & Valuation - Bunzl's average annual committed spend on acquisitions has increased over time, from approximately £250 million (2013-16) to approximately £550 million (2021-24)[18] - The company maintains a consistent valuation approach, with average EV/EBITA multiples on initial stakes between 80x and 86x from 2016-2025[35] - Bunzl targets an acquisition ROIC that achieves the project-WACC within two to three years, with deals often exceeding the project-WACC in the first year[37] Acquisition Process & Selection - Bunzl employs a disciplined selection process, focusing on businesses with strong customer relationships, resilient markets, and synergy opportunities[30] - The company reviews approximately 280 businesses by the executive committee over the last five years, completing around 70 deals[24] - Bunzl emphasizes a thorough due diligence process and considers factors like management fit, valuation differences, and potential conflicts with existing businesses before completing an acquisition[31, 32, 33]