Bunzl gets regulatory green light to complete Nisbets buyout

Distribution group Bunzl has finalised a £339m deal to acquire an 80% stake in catering equipment wholesaler Nisbets.

The takeover, first announced in February, has cleared its final regulatory hurdle from the Irish Competition and Consumer Protection Commission after receiving approval from the UK’s Competition and Markets Authority in April.

The scale of both businesses within the foodservice equipment trade could have posed challenges to the transaction, with Bunzl owning distributor Lockhart Catering Equipment as well as kitchen design house Aggora.

Nisbets’ owned businesses include competitor kitchen supplier Space Group, barware supplier Beaumont and Mitre Linen. However, the fragmented nature of the equipment supply chain looks to have ensured the acquisition’s smooth approval.

Frank van Zanten, chief executive of Bunzl, said: “Nisbets’ digital expertise and market-leading range of own-brand products will further strengthen our position in the catering equipment sector. We welcome our new colleagues at Nisbets to the Bunzl family as we continue to focus on our consistent compounding strategy to grow both organically and through consolidation of our fragmented markets.”

The purchase price is being settled in cash, with the deal placing Nisbets at an equity value of more than £500m.

The Bristol-headquartered firm will continue to operate separately from Bunzl and its leadership team will remain in place, including chair and chief executive Peter Sephton and founder Andrew Nisbet, who will act as a non-executive director. All 1,800 staff will be retained.

For the year ended 31 December 2023, Bunzl generated profit before interest, tax and amortisation of £40.2m.