Elliott takes stake in Bunzl, presses for buybacks and North America review

Elliott Investment Management has moved into Bunzl with a stake of nearly 5% and a demand that goes to the heart of the distributor’s capital strategy: return more cash, and look hard at North America. The activist wants Bunzl to repurchase shares worth as much as 10% of its market value over the next 12 months, while launching a strategic review of the region that generates about 54% of operating profit.

The pressure lands on a company that has already admitted to a difficult stretch. Bunzl said 2025 was a challenging year, with execution issues in Bunzl North America Distribution tied to a new organisational model and a weak market backdrop. In its annual results released on March 2, 2026, the group said adjusted operating profit was in line with expectations and that it had made good progress on its remedial actions, while reiterating its 2026 outlook.

The numbers show why Elliott sees room to push. Bunzl’s 2025 revenue rose 3.0% at constant exchange rates to about £11.85 billion, but adjusted operating profit fell 4.3% to £910.3 million and operating margin slipped to 7.7% from 8.3%. That mix, modest top-line growth but weaker profitability, gives activists a familiar opening: if management cannot lift margins quickly, cash returns and portfolio changes can look like an easier route to higher valuation.

Bunzl had already been pulled into that debate before Elliott arrived. In April 2025, it paused a £200 million share buyback after buying back about £115 million of stock earlier that year, following a profit warning that cited execution problems in its largest North American business. The company had also committed £883 million to acquisitions in 2024 and completed an initial £250 million buyback, underscoring how aggressively capital allocation has shaped the group’s recent strategy.

For Frank van Zanten, Bunzl’s chief executive, the latest campaign raises the prospect of a broader test of the business model. Bunzl has long been prized as a steady, low-drama operator in business distribution, but Elliott’s playbook is clear: press for sharper margins, tighter capital discipline and, if necessary, disposals or a structural review. Whether that unlocks value or erodes the resilience investors have paid for will now define the argument around the FTSE 100 group.