Bunzl plc (110 Park Street, GB-London W1K 6NX; www.bunzl.com), the international distributor and outsourcing group supplying supermarkets, redistributors, caterers and food processors, has merged its GBP 200m-turnover plastics business with its Filtrona division, the world´s leading supplier of outsourced cigarette filters. The company says there are a number of market overlaps between the two operations and a single management structure is more appropriate and cost effective.

The merger was announced as Bunzl published its six months results, to 30 June, that showed a 3% decline in sales for the plastics business, to GBP 103.7m. Operating profit was down 8%, at GBP 11.6m. In the year to 31 December the operating profit for plastics was GBP 22.7m on sales of GBP 204.7m. Overall in the first half of 2002 the group registered a 7% increase in sales, to GBP 1,328.6m, with operating profits rising 6%, to GBP 100.4m.

In plastics Bunzl is a world leader in caps and plugs for protecting engineering products in manufacture and transit, and the business was relatively resilient, says the company, in the first six months in both North America and Europe. Demand was strong in Europe for extruded profiles for the transport, lighting and retail markets, but suffered from the weaker economic conditions prevalent in North America. The Brazilian packaging business for the cosmetics and toiletries markets grew sales but was hit by currency fluctuations.