Intensified bidding battle as KKR presents new proposal to Spectris
The bidding war for Spectris, a leading precision instrument company, has intensified with US private equity firm KKR making a fresh offer. The new offer values Spectris at more than double its trading value before the bidding war began, at a staggering £4.8 billion ($5.6 billion), outbidding its rival Advent International.
The Spectris board has unanimously switched its recommendation from Advent to KKR, offering shareholders £41.75 per share in cash. This is higher than Advent's latest bid of £41.00 per share.
The surge in interest from US-based firms in acquiring UK-listed companies, such as Spectris, is driven by the perception that many UK public companies are undervalued. These companies, particularly those with international sales, high research and development spend, and complex financial profiles, offer attractive take-private opportunities where private equity can add value or manage risks better than the public markets.
KKR, in particular, has been active in UK acquisitions, with several deals in 2024 and 2025, viewing the UK market as an appealing source of investments they can optimize and grow.
If approved, Spectris would join a growing list of firms leaving the London Stock Exchange after being handed more attractive valuations by private equity. A general meeting to approve the takeover is scheduled for 22 August.
According to Charles Hall, head of research at Peel Hunt, the consistent outflow of capital from domestic markets is the root cause of UK companies being more attractive to acquirers than investors. If the UK equity market is to thrive, he suggests an urgent rethink is required to ensure that UK capital backs UK companies.
The M&A landscape has seen a broader shift, with strategic acquirers targeting differentiated IP, AI capabilities, and advanced compute technologies. Daniel Black, Vice President of Business Development at Ideals, stated that the recent wave of US bids for UK-listed companies is a testament to this trend. He also highlighted that the UK is a hub of research excellence and scalable innovation, but market sentiment continues to undervalue these assets.
The bidding war for Spectris reflects a broader trend of US private equity seeking attractive take-private targets in the UK, driven by perceived valuation gaps and strategic opportunities. KKR's latest offer represents a 4.4% improvement on their earlier offer of 4,000p per share.
Advent's first offer for Spectris was for 3,763p per share in June. The KKR offer of 4,175p per Spectris share outflanks Advent's latest offer of 4,100p per share.
[1] Financial Times, "KKR makes fresh offer for Spectris," 14 July 2025 [2] Reuters, "Spectris board recommends KKR's £4.8bn offer over Advent," 15 July 2025
- The Q&A session regarding the Spectris takeover offer by KKR reveals that the financial industry is closely watching the UK market, specifically UK-listed companies like Spectris, as potential targets for private equity firms due to their perceived undervaluation.
- The M&A activity in the business sector is showing a trend of US private equity firms, such as KKR, aggressively pursuing UK firms with unique intellectual property, advanced technology, and complex financial profiles, capitalizing on the perceived valuation gaps and strategic opportunities in the UK market.
