KKR seals £4.8bn acquisition deal over Spectris, surpassing a competitor from the private equity sector
In a significant turn of events, KKR has made an improved offer to acquire Spectris, a British scientific instruments maker. The latest bid values Spectris at a 104.9% premium to its closing share price on 6 June, marking another major blow to Britain's public markets.
The offer includes £40.72 in cash and an interim dividend of 28p per Spectris Share. This improved offer has won the support of Spectris, with the company withdrawing its backing for Advent's initial bid. Spectris directors unanimously recommended KKR's latest offer as fair, reasonable, and in the best interests of shareholders.
The deal between KKR and Spectris, however, requires approval from investors at an upcoming meeting. Since Advent's initial bid in June, Spectris shares have more than doubled, reflecting the increased interest in the company.
The current status of takeovers in Britain's public markets is vigorous, with 2025 shaping up to be the biggest year since 2021. This trend is driven by several factors:
- Continued Interest from US Bidders and Private Equity: Despite initial market volatility in Q1 2025, primarily due to global economic uncertainty, the appeal of UK public companies remains strong. US-based bidders and private equity sponsors are actively pursuing UK targets, attracted by lower valuations compared to their U.S. counterparts.
- Valuation Anomalies: The UK stock market has been experiencing a valuation gap, with companies trading at relatively lower price-to-earnings ratios compared to their U.S. counterparts. This disparity makes UK companies more attractive for takeovers, especially for private equity funds with substantial undeployed cash reserves.
- Market Performance and Confidence: The UK stock market has shown strong performance, with the FTSE 100 reaching record highs and providing a 14.2% return including dividends in the first half of 2025. This robust market environment enhances confidence among investors and bidders.
- Increased Regulatory Scrutiny: Concerns about leaks and insider trading have prompted companies and regulators to tighten controls on takeover deal information. This increased scrutiny aims to ensure fairness and compliance with market abuse regulations, potentially impacting the nature of deals but not necessarily their frequency.
For those interested in investing in such companies, This is Money compares the best investing accounts for readers. AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212 are DIY investing platforms. Each of these platforms offers a "Learn More" option, providing detailed information about their services and offerings.
It is important to note that while This is Money may have affiliate links with these platforms, the commission earned does not affect the editorial independence of This is Money.
[1] Source: Financial Times, The Telegraph, Sky News [2] Source: Financial Times [3] Source: Reuters [4] Source: The Guardian
- The current surge in takeovers in Britain's public markets is partly due to increased interest from US bidders and private equity in UK targets, as they find lower valuations compared to their own market, and the US-based private equity firms are actively investing money into UK companies.
- For individuals interested in investing in such companies, various DIY investing platforms like AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212 offer the opportunity to do so, and it's recommended to explore their services and offerings through the "Learn More" option available on their websites.
