Midyear Results Have Not Altered Our Bunzl Position, Shares Undervalued

Bunzl is the largest worldwide distributor of nonfood consumables, inexpensive products essential to clients' businesses, and is the clear leader in a fragmented market. Bunzl’s scale provides a cost advantage, as its sourcing, consolidation, and delivery allow customers to reduce costs and access expertise for products and regulations. Customers also save time and money by outsourcing warehouse storage and distribution to Bunzl. In North America, this advantage is under threat, as private equity firms have been acquiring companies rapidly. However, offsetting this weakness are positive moat trends in the UK/Ireland and continental Europe segments.