Bunzl to acquire Irish flexible packaging distributor Abco Kovex

25 August 2020 (Last Updated August 26th, 2020 11:35)

Distribution and services Group specialist Bunzl has agreed to acquire Ireland-based flexible packaging company Abco Kovex.

Bunzl to acquire Irish flexible packaging distributor Abco Kovex
Abco Kovex specialises in distributing flexible packaging. Credit: Simon Berry.

Distribution and services Group specialist Bunzl has agreed to acquire Ireland-based flexible packaging company Abco Kovex.

Abco Kovex manufactures, imports and distributes packaging materials and machinery in the UK and Ireland.

The company sells products such as stretchfilm, polythene and paper packaging and pallet wrap to various markets including food, construction, packaging, foodservice and pharmaceutical sectors.

Abco Kovex posted €23m in revenue last year.

The closure of the deal is subject to clearance of the transaction by the Irish competition authority. Financial details of the deal have not been not disclosed.

Bunzl chief executive officer Frank van Zanten said: “The proposed acquisition of Abco Kovex will also complement our existing operations as it will enhance our product offering and expand our customer base both in Ireland and the UK which in turn will allow some cross-selling opportunities.

“With an experienced and knowledgeable management team, the business differentiates itself through continuous product innovation with a focus on sustainability.”

In addition to Abco Kovex, Bunzl entered into agreement to acquire Memphis, Tennessee based safety business MCR Safety.

MCR Safety distributes variety of largely own brand personal protection equipment and other safety products.

The company has one facility each in Memphis and Arkansas. It also operates in Mexico, Canada, the UK, the Netherlands, Colombia and Costa Rica.

Bunzl chief executive officer Frank van Zanten said: “The acquisition of MCR Safety is an important development for Bunzl.

“It is a high-quality business with a strong leadership team and well-established portfolio of own brand products which will complement our existing product range and significantly strengthen and expand our safety operations both in the US and elsewhere.”