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By Noor Zainab Hussain and Esha Vaish
June 28 (Reuters) - British business supplies distributor Bunzl Plc BNZL.L estimated a 7 percent increase in first-half revenue at constant currency, as a boost from recent acquisitions continued to play out over the second quarter.
Shares in Bunzl rose 1.3 percent at 2,339 pence, making it the biggest gainer on London's blue-chip index .FTSE .
Underlying revenue growth in the range of 3 percent to 4 percent for the six months ending June 30 was mainly due to the additional business won, albeit at lower margins, in North America towards the end of 2016. grew 19 percent after accounting for currency fluctuations, Bunzl said, beating estimates from at least three analysts.
The company, which supplies products ranging from safety gear for builders and packaging materials for supermarkets, said it had bought three more businesses in Spain and Canada, adding acquisitions continued to be an important part its growth strategy.
Bunzl, which buys smaller businesses to expand its operations or enter new markets and uses its scale to then drive growth, added it had made eight acquisitions this year, spending about 290 million pounds ($371 million) and adding revenue of 370 million pounds annually.
"With a promising pipeline of additional opportunities, I would expect us to complete further acquisitions as the year progresses," Chief Executive Officer Frank van Zanten said.
Buznl said in August it was still keen on purchasing smaller businesses in the UK as Britain had not become any less attractive since its move to leave the European Union. company has made more than 136 acquisitions globally since 2004, spending on average 194 million pounds annually.
The three acquisitions in Spain and Canada, coupled with an active acquisitions pipeline, suggest earnings will continue to be supported by deal flow, Morgan Stanley (NYSE:MS) analysts wrote in a note.
As a supplier of low-value products such as carrier bags and toilet rolls to supermarkets, hospitals and hotels, Bunzl is more exposed to consumer spending than most of its support services peers that contract orders from large private firms and public budgets.
Consumer confidence in the UK is beginning to slide, hitting the sales of general retailers. However, most of Bunzl's revenue comes from North America. said in February that it expected its U.S. business to see an uplift from President Donald Trump's plan to encourage businesses to manufacture more locally. ($1 = 0.7804 pounds)