Spectris shares rose on Wednesday as the bidding war for the company heats up with private equity firm KKR offering 4,000p per share in a cash acquisition of precision measurement company Spectris, valuing the business at approximately £4.1bn.
The offer tops a recent offer from Advent worth £3.8bn
The offer comprises 3,972p in cash plus a 28p interim dividend, representing a 6.3% premium to rival bidder Advent’s previous 3,763p per share offer and a 96.3% premium to Spectris’ closing price before the takeover period began.
Spectris shares were trading 5% higher at 4,030p at the time of writing. Shares trading above the offer prices suggest the market sees another offer coming in from Advent before long.
In the commentary attached to the offer details, KKR cited Spectris’ strong market position and growth potential as key drivers behind the acquisition.
The US buyout firm believes the company has opportunities to accelerate growth in attractive end markets that it cannot fully exploit as a listed business. This is a similar thesis to Advent’s and many other private equity takeovers of UK companies.
KKR plans to provide additional capital and expertise to drive longer-term expansion both organically and through acquisitions in what it describes as a fragmented market.
The deal values Spectris at 19.5 times its 2024 adjusted earnings before interest, tax, depreciation and amortisation.