Spectris, the UK-based maker of precision instruments and controls, has accepted a £4.2 billion offer from U.S. private equity giant KKR, capping a dramatic takeover battle that has gripped City investors throughout the summer. The agreement follows a protracted and highly public bidding process that drew repeated speculation across the sector and saw multiple offers over several months.
Under the agreed terms, KKR will pay £40 per share, including an interim dividend of 28p, valuing the company at a premium of nearly 100 per cent over its undisturbed June share price. The Spectris board described the KKR offer as “compelling in its certainty and value,” and said it provided “an attractive outcome for shareholders” following a series of revised bids from both private equity groups.
Spectris had initially backed Advent’s approach in June, recommending a £3.8 billion offer at £37.63 per share. KKR entered the fray with successive bids, ultimately matching and then exceeding Advent’s proposal in late July. As the contest escalated, Advent returned with an increased £4.8 billion bid at £41 per share on August 1 — an offer that was initially accepted by Spectris’s board. Four days later the Spectris board has shifted its recommendation in favour of KKR on August 5.
Spectris employs approximately 7,600 people and reported 2024 revenues of £1.3 billion. Its technologies are used in scientific research, process industries, automotive, and life sciences, with customers in over 30 countries. The agreed deal, which implies a multiple of around 19.5 times forward EBITDA, is expected to complete later this year, subject to regulatory approvals.
The battle for Spectris reflects wider trends in UK dealmaking, as international buyers target undervalued mid-cap companies trading at significant discounts to global peers. The FTSE 250, which has lagged broader markets since Brexit, has seen a surge of interest from private equity buyers, particularly from the United States. Analysts note that Spectris’s premium—almost double its June share price—stands out even in a buoyant M&A environment.
City observers say the outcome is likely to fuel further interest in UK-listed industrials. Comparable companies such as Renishaw and Oxford Instruments are also viewed as potential acquisition targets. Spectris’s chair, Mark Williamson, commented: “The board believes this offer recognises both the strategic value and strong future prospects of the business, and provides certainty to all stakeholders at an attractive valuation.”
The acquisition will now proceed to shareholder and regulatory votes, with completion expected in the final quarter of 2025.
