By Holly Williams
Industrial group Spectris has agreed to a takeover by Kohlberg Kravis Roberts (KKR) worth more than 拢4 billion after the private equity giant muscled out rival bidder Advent International.
Spectris has given its backing to the 拢40-a-share cash bid, which values the FTSE 250-listed firm at around 拢4.1 billion, or 拢4.7 billion including debts.
It trumps the 拢37.63-a-share deal it had previously agreed with US investment firm Advent, which valued the firm at about 拢3.8 billion, seeing Spectris withdraw its recommendation for the Advent offer.
The deal for Spectris marks the latest in a long line of London-listed firms set to leave the market after a recent flurry of firms defecting from the City for rival exchanges overseas or being bought out.
Spectris 鈥 a maker of precision measurement instruments for firms such as those in the pharmaceutical and semiconductor sectors 鈥 is headquartered in London and employs about 7,400 people in more than 30 countries.
It made underlying earnings of 拢203 million last year on sales of 拢1.3 billion.
Mark Williamson, chairman of Spectris, said: 鈥淭his offer reflects the excellent work of the Spectris management team in recent years to transform Spectris into a focused, high quality, premium precision measurement business that is well positioned for the future.
鈥淲hile we remain confident in the opportunities for the business, KKR鈥檚 offer provides attractive and immediate cash value for shareholders and a compelling vision for the future of the group.鈥
Joshua Weisenbeck, partner at KKR, added: 鈥淪pectris is an impressive industrial technology business serving attractive end-markets such as life sciences, industrial automation, aerospace and defence, academia and more.
鈥淲e believe there is an excellent fit in terms of our respective values, with a strong focus on its talented employees and supporting communities in which it operates.鈥
KKR first approached Spectris on June 2. It said it had no plans for large scale job cuts following the deal, saying it 鈥渄oes not intend to make any material reduction to the headcount or any material change to the conditions of employment or to the balance of skills and functions of the Spectris Group鈥檚 employees or management鈥.
But it said this does not include measures under the ongoing overhaul by Spectris, under which it aims to make savings of at least 拢30 million in 2025, most of which will come in the final six months of the year.