Elliott presses Bunzl for buybacks after building stake
Business supplies distributor is latest in string of UK targets for US activist hedge fund
Elliott Management has taken an almost 5 per cent stake in FTSE 100 business services group Bunzl, the latest UK target for the US activist hedge fund.
Elliott is pushing for changes at the workplace supplies distributor, according to people familiar with the matter, including share buybacks and a strategic review focused on Bunzl’s North America business.
Elliott’s position in Bunzl comes after a string of recent high-profile deals in the UK, including building a significant stake in the London Stock Exchange Group. LSEG subsequently announced plans to launch a £3bn share buyback.
Bunzl’s stock rose as much as 3 per cent on Monday morning after news of Elliott’s stake was first reported by Bloomberg. That gave the company an almost £8.5bn market capitalisation, up about 25 per cent so far this year.
Shares in Bunzl plunged in April last year after a profit warning and a pause in its share buyback scheme. The company at the time cited pressure on its North America unit, its largest business, which mainly serves clients in food service and grocery.
The stock has since recovered moderately but remains well below its peak price in 2024.
Bunzl recorded a 4 per cent decline in adjusted operating profit to £910mn in 2025, after posting £11.8bn in revenue.
London-headquartered Bunzl has been a serial buyer of companies as it has sought to build up its business, making more than 230 acquisitions in the past two decades that contributed the majority of its growth.
Elliott’s move on Bunzl comes as many London-listed companies have come under pressure from activists and potential acquirers this year, seeking to take advantage of relatively weak valuations.
Last month, activist hedge fund Corvex Management pushed for the FTSE 100 group Whitbread, which owns Premier Inn, to put itself up for sale, while testing group Intertek was targeted by other activist funds before it announced it was set to agree a £10.6bn sale to buyout group EQT.
Elliott has also built stakes in BP and Anglo American in recent years, and is a lender to the UK’s largest water provider Thames Water.
Elliott declined to comment. Bunzl said it was “committed to engagement with all shareholders and is focused on creating shareholder value”.