Activist investor Elliott Investment Management has reportedly acquired an almost 5% stake in UK distribution group Bunzl, marking the latest expansion of the hedge fund’s activism in the British market, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as revealing that Elliott is urging the FTSE 100 company to launch a substantial share repurchase programme, buying back stock equivalent to as much as 10% of its market capitalisation over the coming year.
The activist is also seeking a broader strategic review of Bunzl’s operations, with particular attention on its North American division, the company’s largest business segment.
Representatives for Elliott declined to comment, while Bunzl did not immediately respond to requests for comment.
Bunzl has long been regarded as a dependable income stock, supported by more than 30 consecutive years of dividend growth and a shareholder base dominated by long-term investors. However, the company’s shares have come under pressure since issuing a profit warning last year.
The decline has reduced Bunzl’s market value to approximately £8.2bn, down from around £12.6bn in September 2024.
People familiar with Elliott’s thinking said the hedge fund believes Bunzl should deploy a greater proportion of its free cash flow toward share repurchases, particularly given a slowdown in acquisitions and recent buyback activity.
The company repurchased approximately £200m of its own shares during 2025, following buybacks of roughly £250m in late 2024.
Bunzl’s acquisition programme has also moderated. The company completed eight transactions in 2025, compared with 15 deals the previous year, according to its annual reports.
Operational issues within the North American division were a key factor behind last year’s profit warning. In response, Bunzl has implemented leadership changes aimed at improving performance in the business.
Elliott is understood to believe that the North American operations may warrant closer strategic examination, arguing that the business has limited overlap with other parts of the group. According to people familiar with the matter, a separation could help narrow Bunzl’s valuation discount relative to peers, which trade at forward earnings multiples roughly 40% to 50% higher.
