KKR Acquires UK's Spectris in £4.7 Billion Takeover Deal

U.S. private equity firm KKR has successfully outbid Advent International to acquire British scientific instruments manufacturer Spectris for £4.7 billion. The deal, announced on July 2, 2025, represents one of the largest UK takeovers this year and underscores the growing interest of foreign private equity firms in British industrial assets.

KKR's offer of £40 per share, including dividends, surpasses Advent's previous bid of £37.63 per share. This valuation represents a 96% premium over Spectris' share price on June 6, 2025, the day before Advent's initial approach was revealed. The acquisition is expected to conclude by the first quarter of 2026, pending necessary shareholder and regulatory approvals.

Spectris, a UK-based company, specializes in high-tech instruments, test equipment, and software solutions. Serving industries such as pharmaceuticals, semiconductors, aerospace, and automotive, Spectris operates across 36 countries. In recent years, the company has undergone strategic transformations, including divestments and acquisitions, to focus on precision measurement and control technologies.

KKR's bid of £40 per share includes £39.72 in cash and a 28 pence interim dividend, valuing Spectris' equity at approximately £4.1 billion and the enterprise at around £4.7 billion. This represents a 96% premium over Spectris' share price on June 6, 2025, the day before Advent's initial approach was revealed.

Prior to KKR's successful bid, Advent International had proposed a £4.4 billion acquisition, offering £37.63 per share, including dividends. Spectris' board initially supported Advent's offer but shifted its recommendation following KKR's higher bid.

Following the announcement, Spectris' shares rose by up to 5.3%, reaching their highest level in over three and a half years, indicating strong investor enthusiasm.

KKR views Spectris as an impressive industrial technology business serving attractive end-markets such as life sciences, industrial automation, aerospace, and defense. The firm aims to build on Spectris' values while investing to continue its transformation as a global leader.

Advent International, known for scaling industrial tech firms, had initially secured Spectris' board's support with its £4.4 billion bid. However, the higher offer from KKR led to a withdrawal of this recommendation.

The acquisition is subject to shareholder and regulatory approvals, with completion expected by the first quarter of 2026. Given Spectris' global operations, approvals from multiple jurisdictions, including the EU, US, and China, may be required. KKR's extensive experience in the UK market and Spectris' non-controversial end markets may facilitate the approval process.

This acquisition underscores a trend of foreign private equity interest in UK firms, driven by attractive valuations and market stability. The bidding war between KKR and Advent highlights the increasing appeal of middle-market public companies in the UK to private equity firms.

KKR's successful acquisition of Spectris not only signifies a strategic expansion into the UK industrial sector but also reflects the competitive nature of private equity in pursuing valuable assets. As the deal progresses towards completion, stakeholders will be keenly observing the integration strategies and the broader implications for the UK market.