The private equity bidding war for precision instrument business Spectris has stepped up a gear after New York-based KKR stepped in with a fresh offer that values the business at £4.8bn.
The offer of 4,175p per Spectris share outflanks a fresh offer made by Boston-based Advent of 4,100p per share on Friday, and represents a 4.4 per cent improvement on an earlier 4,000p a share offer it previously made. Advent’s first offer in June was for 3,763p per share.
Following the latest offer, which now values Spectris at more than double where it had been trading before the bidding war began, the firm’s board said it had now recommended shareholders vote to approve KKR taking over the business.
A general meeting to approve the takeover is scheduled for 22 August.
Spectris latest blow for London
The deal, if approved, would add Spectris to a ballooning number of firms leaving the London Stock Exchange after being handed much more attractive valuations by private equity.
Daniel Black, Vice President of Business Development at Ideals, said: “The recent wave of US bids for UK-listed companies reflects a broader shift in the M&A landscape, where strategic acquirers are targeting differentiated IP, AI capabilities, and advanced compute technologies.
“The UK remains a hub of research excellence and scalable innovation, but market sentiment continues to undervalue these assets.
“While valuation remains a factor, it is the global relevance and integration potential of UK innovation that is drawing strategic buyers. For US corporates seeking long-term growth in capital-intensive sectors, the UK has become a natural entry point.
Charles Hall, head of research at Peel Hunt, added: “Companies in the UK seem to be far more attractive to acquirors than investors. The root cause is the consistent outflow of capital from domestic markets.
“If we want the UK equity market to thrive, an urgent rethink is required to ensure that UK capital backs UK companies.”