American private equity giant KKR has secured the backing of Spectris shareholders with a £4.1 billion takeover offer that outbid rival firm Advent International, capping a month-long auction for the British precision measurement company. The deal, announced Wednesday, marks the largest UK corporate takeover of 2025 and underscores continued appetite for high-tech industrial assets despite economic uncertainty.
KKR's £40-per-share offer represents a 6.3% premium over Advent's previous bid of £37.63 per share, according to Shares Magazine1. The FTSE 250-listed company's board unanimously withdrew its recommendation for Advent's earlier £4.4 billion proposal and endorsed KKR's superior offer, which values Spectris at approximately £4.7 billion including debt2.
Spectris shares rose 4.4% to 3,996.55p in London trading Wednesday morning, with the stock climbing 42% over the past year1. The final offer price represents a 96% premium to Spectris' closing price of £20.38 on June 6, the last trading day before the bidding war commenced2.
"This attractive offer from KKR recognises the quality of Spectris, our people, and our strong growth prospects," CEO Andrew Heath said3. The acquisition requires approval from 75% of shareholders and is expected to complete by the first quarter of 20262.
The takeover battle began in early June when Advent first approached Spectris, which had previously rebuffed several earlier offers from the Boston-based firm1. KKR then entered the fray with two unsuccessful bids, including one rejected on June 13 when Spectris favored Advent's proposal2.
According to Business Cloud, analysts at Stifel suggested "the ball is now back in Advent's court" and noted the firm had reserved rights to increase its offer if faced with competing bids3. However, no counter-offer has materialized as of Wednesday afternoon.
Spectris, which employs 7,600 people, operates through two divisions serving pharmaceutical, semiconductor, and advanced materials sectors1. Spectris Scientific generates annual sales of £776.7 million while Spectris Dynamics contributes £501.7 million1.
Chair Mark Williamson credited the management team's work to "transform Spectris into a focused, high quality, premium precision measurement business that is well positioned for the future"2. The company's 2024 adjusted EBITDA of £241 million implies a 19.5x multiple under KKR's offer3.
