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Highlights:

  • Spectris shareholders to receive GBP 40.00 per share, valuing the company at GBP 4.1 billion
  • Board withdraws support for Advent offer following higher KKR-backed proposal
  • Acquisition to proceed via court-sanctioned scheme, expected to close by Q1 2026

Spectris plc (LSE:SXS), a London-headquartered precision measurement company, has agreed to a recommended cash acquisition by Project Aurora Bidco Limited, a special purpose vehicle indirectly owned by funds advised by Kohlberg Kravis Roberts & Co. L.P. (KKR). Under the terms of the offer, each Spectris shareholder will receive GBX 40.00 in cash per share, comprising GBX 39.72 in consideration from Bidco and an interim dividend of 28 pence to be paid by Spectris, subject to board approval.

The GBX 40.00 offer price represents a 96.3% premium over Spectris' undisturbed share price of GBX 20.38 on 6 June 2025. It also exceeds the competing GBX 37.63 per share proposal made by Advent International earlier in June. The deal values Spectris’ total equity at approximately GBX 4.1 billion and its enterprise value at roughly GBX 4.7 billion, implying valuation multiples of 19.5x Adjusted EBITDA and 23.0x Adjusted EBIT for the year ending 31 December 2024.

The Spectris board has unanimously recommended the KKR-backed offer and withdrawn its earlier support for the Advent bid. The acquisition remains subject to shareholder approval and regulatory clearances in jurisdictions including the EU, U.S., China, and the UK. Completion is anticipated by the first quarter of 2026.

Founded in the UK, KKR has been active in the market since 1996 and has completed more than 50 investments in the country. The firm cited Spectris' repositioning efforts and targeted acquisitions in recent years as part of its rationale for the deal. KKR intends to maintain existing charitable contributions by Spectris, particularly its annual GBX 1 million support for the Spectris Foundation. Additionally, it is considering extending employee ownership initiatives across Spectris’ workforce, though specific terms have not been finalized.

Spectris operates through two divisions: Spectris Scientific and Spectris Dynamics. Spectris Scientific includes Malvern Panalytical, Particle Measuring Systems, and Servomex, providing measurement and characterisation tools for applications in pharmaceuticals, semiconductors, and materials research. Spectris Dynamics, via its HBK brand, focuses on high-precision sensing and integrated test solutions, catering to sectors such as automotive, aerospace, and advanced manufacturing.

In the financial year ending 31 December 2024, Spectris reported sales of GBX 1.3 billion, with adjusted EBITDA of GBX 239 million and operating profit of GBX 203 million. During the same year, it acquired three businesses SciAps, Micromeritics, and Piezocryst to expand capabilities in its core measurement technologies. Red Lion Controls was divested in April 2024.

Commenting on the offer, Spectris Chairman Mark Williamson said the board views the KKR-backed proposal as offering immediate value to shareholders and reflects recent strategic progress. CEO Andrew Heath noted the company's recent transformation and welcomed KKR’s proposed backing for further development initiatives.

The KKR team highlighted Spectris' product base, sector exposure, and operational model as key factors in the acquisition decision. Spectris shares up 5.12% at GBX 4,026.00 on 2 July 2025 following the announcement.