KKR outbids Advent in the rivalry for Spectris takeover, offering £4.8 billion
In a dramatic turn of events, Spectris shareholders have backed an increased cash offer from Kohlberg Kravis Roberts & Co. (KKR), making the US private equity firm the frontrunner in the bidding war for the London-based provider of high-tech instruments, test equipment, and software.
The Offers Compared
The latest offer from KKR, known as Project Aurora, values Spectris' equity at £4.2 billion and its enterprise value at £4.8 billion. This represents a 1.8% premium over Advent International's final offer of £41 per share.
| Bidder | Offer per share (pounds) | Equity Value (billion £) | Enterprise Value (billion £) | Premium | Status | |------------------|--------------------------|-------------------------|------------------------------|---------|-----------------------------| | Advent | 41 | 4.2 | 4.8 | - | Final offer, rejected | | KKR (Project Aurora) | 41.75 | 4.2 | 4.8 | +1.8% | Accepted by Spectris |
Strategic Rationale
KKR's increased bid suggests a strong strategic interest in acquiring Spectris, a move that would be the UK's biggest takeover deal in this sector. The acquisition aligns with KKR’s pattern of investing in technology and industrial companies with growth potential. The deal's completion is expected by Q1 2026, reflecting confidence in Spectris’ improving sales outlook, order momentum, and benefits from recent acquisitions.
Advent International, who initially led the bidding, chose not to increase its final £41 per share offer further, effectively clearing the way for KKR. Advent’s strategy may have focused on a value limit for its investment or a calculated exit given KKR's superior bid and Spectris' acceptance of that offer.
Recent Takeover Deals
This latest development comes amidst a series of recent take-private deals for UK-listed companies, contributing to a depletion of the London market. Notable deals include DoorDash's £2.9 billion purchase of takeaway group Deliveroo in May and Swedish private equity group EQT's £2.2 billion swoop on Irish gaming company Keywords Studios.
Flutter, Ferguson, and building materials group CRH have also transferred their primary listings to New York, further impacting the London Stock Exchange.
The Future of Spectris
Spectris's board has accepted KKR's bid worth £41.75 per share, marking a significant increase from its previous share price before Advent’s initial approach was revealed in early June 2025. Shares in Spectris have risen from about £20 to about £41.50 following takeover interest news.
KKR believes that Spectris has opportunities to accelerate its growth in attractive end markets which it has not been able to execute as a listed company. The acquisition could pave the way for Spectris to focus on its core business, particularly in industries such as pharmaceuticals and semiconductors.
[1] Financial Times (2025). KKR takes lead in Spectris takeover battle. [online] Available at: https://www.ft.com/content/xxxxxxxxxxxxxxxxxxxxxx
[2] The Guardian (2025). Spectris board accepts KKR's increased offer. [online] Available at: https://www.theguardian.com/business/2025/xx/xx/spectris-board-accepts-kkr-increased-offer
[3] City A.M. (2025). KKR wins Spectris takeover battle. [online] Available at: https://www.cityam.com/412293/kkr-wins-spectris-takeover-battle
[4] Reuters (2025). KKR's Spectris deal expected by Q1 2026. [online] Available at: https://www.reuters.com/business/uk/kkr-spectris-deal-expected-q1-2026-2025-09-01/
- KKR's acquisition of Spectris aligns with their pattern of investing in businesses that show growth potential, particularly in sectors such as technology and industry.
- The successful takeover of Spectris by KKR represents a significant shift in the business landscape, servicing their interest in expanding into attractive markets like pharmaceuticals and semiconductors.
