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Investing.com -- Spectris (LON:SXS) shares rose over 4% on Wednesday following the announcement that U.S. private equity firm KKR will acquire the company in a £4.7 billion cash deal.
The agreement, confirmed on Wednesday, will see KKR acquire the precision measurement group through its vehicle, Project Aurora Bidco Limited.
The transaction will be implemented via a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006.
Under the terms of the deal, Spectris shareholders will receive £40.00 per share, comprising £39.72 in cash from Bidco and an interim dividend of 28 pence, pending approval in the FY25 dividend cycle.
The offer represents a 96.3% premium to the undisturbed closing price of £20.38 on June 6 and is 6.3% above a competing offer from Advent valued at £37.63 per share.
The board of Spectris unanimously recommended the KKR offer, withdrawing its earlier support for Advent’s proposal.
It cited the increased certainty and higher valuation of the KKR bid, along with KKR’s stated support for Spectris’ ongoing operations and workforce.
The board also noted that the offer provides shareholders with a full cash exit at a premium during a period of broader market uncertainty.
For the year ended December 31, 2024, Spectris reported sales of £1.2 billion and an adjusted operating profit of £203 million.
The group operates through its Scientific and Dynamics divisions, serving sectors such as pharmaceuticals, semiconductors, aerospace and automotive. Spectris shares had a market capitalization of £2.1 billion as of June 6.
The acquisition is expected to close in or by the first quarter of 2026, pending shareholder and court approval, as well as regulatory clearances in the U.K., EU, U.S., and China. Following completion, Spectris will delist from the London Stock Exchange (LON:LSEG) and re-register as a private company.