Spectris Shares Surge 4% After KKR Announces £4.7 Billion Buyout Agreement

Shares of Spectris (LSE:SXS) jumped more than 4% on Wednesday following the announcement that U.S. private equity firm KKR has agreed to acquire the precision measurement company in a cash transaction valued at £4.7 billion.

KKR will complete the acquisition through its subsidiary, Project Aurora Bidco Limited, using a court-approved scheme of arrangement under Part 26 of the Companies Act 2006.

Under the terms of the deal, Spectris shareholders are set to receive £40.00 per share. This amount consists of £39.72 in cash paid by Bidco, along with an interim dividend of 28 pence, which is subject to approval during the 2025 dividend cycle.

This offer represents a substantial premium — approximately 96.3% — over Spectris’ undisturbed closing price of £20.38 recorded on June 6. It also surpasses a rival bid from Advent, which valued shares at £37.63, by about 6.3%.

The Spectris board has unanimously endorsed the KKR proposal, withdrawing its previous support for Advent’s competing offer. The board highlighted KKR’s higher valuation, greater deal certainty, and commitment to maintaining the company’s current operations and workforce as key factors in its decision.

Furthermore, the board emphasized that the all-cash offer presents shareholders with an attractive exit at a premium, especially amidst ongoing market volatility.

For the fiscal year ending December 31, 2024, Spectris reported revenues of £1.2 billion and an adjusted operating profit of £203 million. The company operates primarily through its Scientific and Dynamics business units, supplying industries including pharmaceuticals, semiconductors, aerospace, and automotive.

As of June 6, Spectris had a market capitalization of roughly £2.1 billion.

The transaction is anticipated to be completed by the first quarter of 2026, contingent on shareholder approval, court sanctioning, and regulatory clearances across the UK, EU, US, and China. Upon completion, Spectris will be delisted from the London Stock Exchange and transition to a privately held company.