KKR clinches backing from Spectris for £4.1bn higher bid
Spectris has given its backing to the £40-a-share cash bid, which values the FTSE 250-listed firm at around £4.1 billion, or £4.7 billion including debts.
It trumps the £37.63-a-share deal it had previously agreed with US investment firm Advent, which valued the firm at about £3.8 billion, seeing Spectris withdraw its recommendation for the Advent offer.
The deal for Spectris marks the latest in a long line of London-listed firms set to leave the market after a recent flurry of firms defecting from the City for rival exchanges overseas or being bought out.
Spectris – a maker of precision measurement instruments for firms such as those in the pharmaceutical and semiconductor sectors – is headquartered in London and employs about 7,400 people in more than 30 countries.
It made underlying earnings of £203 million last year on sales of £1.3 billion.
Mark Williamson, chairman of Spectris, said: 'This offer reflects the excellent work of the Spectris management team in recent years to transform Spectris into a focused, high quality, premium precision measurement business that is well positioned for the future.
'While we remain confident in the opportunities for the business, KKR's offer provides attractive and immediate cash value for shareholders and a compelling vision for the future of the group.'
Joshua Weisenbeck, partner at KKR, added: 'Spectris is an impressive industrial technology business serving attractive end-markets such as life sciences, industrial automation, aerospace and defence, academia and more.
'We believe there is an excellent fit in terms of our respective values, with a strong focus on its talented employees and supporting communities in which it operates.'
KKR first approached Spectris on June 2. It said it had no plans for large scale job cuts following the deal, saying it 'does not intend to make any material reduction to the headcount or any material change to the conditions of employment or to the balance of skills and functions of the Spectris Group's employees or management'.
But it said this does not include measures under the ongoing overhaul by Spectris, under which it aims to make savings of at least £30 million in 2025, most of which will come in the final six months of the year.
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