UK merger and acquisition activity has been in the spotlight this year. Much of the attention has been on overseas buyers snapping up prized British companies.
But away from the headlines of major takeovers, domestic dealmaking is often more incremental. UK companies are quietly adding capabilities, markets or scale through smaller acquisitions. While less eye-catching, this type of activity can reflect a more considered and disciplined approach, prioritising complementary targets, rather than pursuing transformational deals.
We highlight three companies that are looking to support growth through bolt-on acquisitions.
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Breedon – building scale
Breedon sits at the heavy end of the construction supply chain, producing aggregates, asphalt, cement, ready-mixed concrete and other essential materials. These are basic products, but they benefit from local supply dynamics and high barriers to entry, especially where planning constraints, transport costs, and access to raw materials matter.
That gives established operators an advantage because construction materials are often bulky, low-value products where proximity to customers is important. Breedon has built strong positions across Great Britain and Ireland and is now using acquisitions to expand its US footprint.
That expansion has followed a disciplined buy-and-build model, adding quarries, plants and customer-facing operations, while improving efficiency across a more integrated network. Recent deals have continued that pattern, including Falling Springs Quarry in Missouri, a bolt-on acquisition expected to enhance margins and earnings immediately while strengthening Breedon’s US platform.
However, a challenging business environment has seen investor sentiment suffer. Weak UK residential activity, delays to some infrastructure projects in Great Britain and Ireland, and weather disruption in the US all made recent trading less smooth than investors had hoped. Higher debt after US acquisitions has probably added to that caution.
More recently, the picture has improved. First-quarter revenue rose 5%, with stronger performances in Ireland and the US helping offset softer conditions in Great Britain, where residential demand remains subdued, but some non-residential markets appear to be stabilising.
Trading below 10 times forward earnings and with a dividend yield above 5%, albeit one that’s not guaranteed, the valuation looks undemanding if operational improvements, resilient infrastructure demand and US growth continue to come through.
Bunzl – supply chain consolidator
Bunzl has built its business through a long-running buy-and-build strategy focused on smaller, bolt-on deals. The group distributes everyday non-food essentials like packaging, cleaning and hygiene products, safety equipment and healthcare consumables. These are low-cost items, but they’re critical to customers’ day-to-day operations, which helps support resilient demand.
Acquisitions are central to how Bunzl grows. The markets it operates in are highly fragmented, giving it plenty of scope to buy smaller distributors, broaden its product range and deepen its presence in existing geographies. Deals are usually self-funded, relatively modest in size, and folded into a decentralised model that keeps local expertise in place while still letting Bunzl benefit from scale in sourcing, systems, and best practices.
Business appears to be stabilising after a tougher period. In the first quarter of 2026, underlying revenue growth returned, helped by improving momentum in North America. Operating margin is still expected to be slightly lower than last year, pointing to a business that isn’t firing on all cylinders yet. Looking ahead, operational improvements and a healthier acquisition pipeline are starting to support the outlook.
Even after a strong recovery this year, Bunzl’s valuation still sits below its longer-run average. That suggests some scepticism remains. To keep the rebound going, the group will need to show that organic growth is recovering, margin pressure is easing, and its acquisition-led model continues to deliver. If that happens, there could be further room for investor confidence to rebuild. If not, recent gains could be harder to sustain.
GSK – Filling the pipeline
GSK tends to make larger, less frequent deals. It already makes substantial internal investments in research & development but bringing new medicines to market is a long and risky process. Targeting later-stage research programmes means much of the early scientific risk has already been reduced, improving the chances of success.
Smaller biotech firms often shoulder early development, with research programs changing hands as they near commercialisation, where GSK is better placed to handle regulatory approval and bring treatments to market. The proposed buyout of Nuvalent is a good example of this kind of later-stage opportunity, giving GSK access to near-approval lung cancer treatments.
However, biotechs are typically acquired for future potential rather than a commercial track record, which means a higher level of risk. GSK’s earlier acquisition of Tesaro for $5.1bn showed how outcomes can vary widely, with some assets falling short of expectations while others go on to become more meaningful contributors.
Alongside acquisitions, GSK also uses licensing agreements, which can offer a more flexible route into new medicines. These deals typically involve smaller upfront payments, with much of the cost tied to milestone or success-based payments as drugs progress through development and into the market. That helps limit downside if a treatment fails, while still allowing GSK to benefit if it succeeds.
Overall, GSK has shown strong execution in both in-house R&D and external business development. If it can meet its medium-term targets, we see scope for further upside, but there’s still more work to do to convince the market.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Past performance is not a guide to the future. Investments rise and fall in value so investors could make a loss. Yields are variable and not guaranteed.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.