Spectris agrees to £3.8bn takeover but KKR threatens bidding war
Industrial group Spectris has agreed to a £3.8bn takeover by US private equity Advent but a bidding war could be brewing as KKR mulls a rival offer.
The FTSE 250 firm has been valued at £37.73 per share in the deal. Shares jumped 13.5 per cent as markets opened on Monday to around 3,726.
Private equity giant KKR has indicated it is willing to tussle with Advent regarding a Spectris takeover after confirming it was in the “advance stages of due diligence” and arranging financing for a potential bid after the takeover was announced.
KKR said it had been “engaging constructively” with the Spectris board, since making its first approach on June 2.
The firm said it “strongly encourages shareholders to take no action with regards to the Advent offer”.
Spectris another blow to London market
The deal between Spectris and Advent, first announced at the beginning of the month, marks the latest blow in London Stock Exchange firms ditching their listing as foreign giants swoop.
The embattled London markets have faced a fleet of delisting woes this month, including Canadian consultancy giant acquiring engineering firm Ricardo and UK quantum computing firm Oxford Ionics agreeing to a takeover by New York rival IonQ.
Analysts previously told City AM the “cheap and undervalued” pricing of UK stocks were attracting bargain hunters.
Spectris, which employs over 7,000 people across the UK, specialises in tech development for firms in pharmaceutical and semiconductor sectors.
Mark Williamson, the chairman of Spectris, said: “The board… believes that Advent’s offer recognises the attractiveness of Spectris and represents strong and immediate cash value for shareholders at an attractive premium of 84.6 per cent to the undisturbed share price”
Shonnel Malani, managing partner at Advent International, said the acquistion served as a “vote of confidence” in British engineering and innovation.
“We are dedicated to accelerating Spectris’ growth and enhancing its leadership in precision measurement,” Malani said.