Advent International Launches £3.8 Billion Takeover of Spectris plc

Private equity interest in UK tech assets intensifies as Advent International launches record-breaking precision measurement company acquisition

Three Key Facts

• £3.8 billion all-cash acquisition – Advent International acquires Spectris plc at £37.63 per share, representing an 85% premium to the June closing price
• Spectris shares surge 15% – Stock jumps to 3,772 pence following the unanimous board recommendation of the takeover deal
• KKR enters bidding war – Rival private equity firm confirms advanced due diligence and financing arrangements for a competing offer

Introduction

Spectris plc shares jumped 15% as Advent International announced a £3.8 billion all-cash acquisition of the precision measurement company. The deal represents one of the largest UK takeovers in 2025 and highlights the growing appetite among private equity firms for undervalued British industrial technology assets.

The acquisition comes at a substantial premium to recent trading levels, with Advent offering £37.63 per share through its MI Metron UK Bidco vehicle. This bid marks an 85% premium over Spectris’ June 6 closing price of £20.38 and reflects the increasing disconnect between private market valuations and public market pricing for UK tech companies.

Key Developments

Advent’s offer structure includes £37.35 in cash from Bidco plus a pending 28 pence interim dividend. Shareholders will receive the final dividend for 2024 without any reduction to the cash consideration, providing additional value beyond the headline acquisition price.

The Spectris board unanimously recommends the transaction, which requires approval through a court-sanctioned scheme under Part 26 of the Companies Act 2006. Directors holding 0.22% of issued share capital have committed to supporting the deal.

KKR emerged as a potential competing bidder, confirming it reached advanced stages of due diligence and secured financing arrangements. The rival private equity firm has been engaging with the Spectris board since June 2 and strongly encourages shareholders to take no action regarding the Advent offer.

Market Impact

Spectris shares opened 15% higher at 3,772 pence, bringing the stock closer to the offered price. The FTSE 250 company had traded as low as 1,877 pence earlier this year, highlighting the significant value creation for shareholders who maintained positions through the volatility.

The enterprise value of £4.4 billion represents 18.5 times adjusted EBITDA and 21.8 times adjusted EBIT for 2024. These multiples reflect valuations that would be difficult to achieve on the London Stock Exchange, according to Investing.com.

The premium stands at 74.6% above the three-month volume-weighted average and 82.9% above the one-month volume-weighted average price. This substantial markup demonstrates the disconnect between public market pricing and private equity valuations for UK industrial technology companies.

Strategic Insights

The acquisition exemplifies private equity firms identifying greater value in UK-listed technology and industrial companies than public markets currently provide. Spectris has undergone strategic repositioning since 2018, focusing on high-growth, high-margin scientific instrumentation segments that align with private equity investment criteria.

Spectris operates through two main divisions: Spectris Scientific and Spectris Dynamics, serving pharmaceutical and semiconductor sectors across over 30 countries. The company generated £1.4 billion in revenue and £203 million in adjusted operating profit during 2024.

Recent acquisitions including SciAps, Micromeritics, and Piezocryst demonstrate the company’s consolidation strategy in measurement and analytics technologies. The divestiture of Red Lion Controls in April reflects portfolio optimization efforts that enhance appeal to private equity buyers.

Expert Opinions and Data

Mark Williamson, chairman of Spectris, supports the transaction as recognizing the company’s attractiveness. The board believes Advent’s offer represents strong and immediate cash value for shareholders at an attractive 85% premium to the undisturbed share price.

Shonnel Malani, managing partner at Advent International, describes the acquisition as a vote of confidence in British engineering and innovation. Advent commits to accelerating Spectris’ growth and enhancing its leadership position in precision measurement markets.

Advent’s $91 billion in assets under management and experience in industrial technology reinforce the strategic fit. The firm’s track record in consolidating and growing industrial companies provides confidence in its ability to execute post-acquisition value creation strategies.

Industry analysts view the deal as reflecting undervaluation by public markets and the growing appeal of private equity-driven merger activity in the UK technology sector. The transaction represents the latest example of foreign buyers acquiring British companies at significant premiums to market prices.

Conclusion

The Spectris acquisition validates the company’s strategic repositioning while highlighting the persistent valuation gap between private and public markets for UK industrial technology assets. Completion remains subject to shareholder and regulatory approvals in the UK, US, and EU, with the transaction expected to close in the first quarter of 2026.

The deal reinforces the trend of London Stock Exchange delistings as private equity firms capitalize on undervalued British companies. Spectris will transition to private ownership and delist from the London Stock Exchange, joining a growing list of UK technology companies choosing private market valuations over public market constraints.