U.S.-based activist investor Elliott Investment Management has acquired a near 5% stake in British business supplies distributor Bunzl, according to a person familiar with the matter. This significant investment sent the British group’s shares up by 3% in early trading. Bunzl is a diverse distributor that supplies everything from stationery to food packaging, catering to businesses across various sectors.
The stake positions Elliott among Bunzl’s top shareholders. Elliott is now advocating for Bunzl to implement a share buyback program, worth up to 10% of its market capitalisation over the next 12 months. Additionally, the activist investor is pushing for a comprehensive review focused on Bunzl’s crucial North American business, aiming to enhance the group’s overall valuation. North America accounts for over 50% of Bunzl’s revenue, a region where the company has previously undertaken cost cuts and product mix adjustments due to weak demand and execution.
Following the news, Bunzl shares rose as much as 3.7%, reaching 2,632 pence and giving it a market valuation of approximately £8.23 billion. The stock has seen a robust 26% gain so far this year. In April, Bunzl reported a 2% increase in first-quarter underlying revenue and affirmed its 2026 outlook, banking on higher volumes and price adjustments amidst uncertainties. Elliott Investment Management, known for its activist approach, also holds stakes in BP and the London Stock Exchange Group, where it has similarly advocated for buybacks and operational improvements. Neither Bunzl nor Elliott immediately responded to requests for comment regarding the recent developments.
