LONDON: Spectris plc, a leading precision measurement company, has agreed to a recommended cash acquisition by MI Metron UK Bidco Ltd, an indirect subsidiary of funds managed by Advent International, the firms announced Monday.
The deal, valued at approximately £3.8 billion ($4.8 billion), will see Spectris shareholders receive £37.63 per share, comprising £37.35 in cash and an interim dividend of 28 pence. The offer represents an 84.6% premium to Spectris’ closing share price of £20.38 on June 6, the last trading day before the offer period began.
The acquisition will be implemented through a court-sanctioned scheme of arrangement under U.K. company law. Advent has also agreed that shareholders will receive Spectris’ final dividend for fiscal year 2024 without reducing the cash consideration.
“The board believes this offer provides compelling value for shareholders and reflects the strength of Spectris’ business,” a company statement said.
The transaction, implying an enterprise value of £4.4 billion ($5.6 billion), is expected to proceed subject to regulatory and shareholder approvals.
Spectris specializes in precision instrumentation and controls, serving industries including aerospace, healthcare and energy. Advent International, a global private equity firm, has previously invested in sectors such as technology, business services and health care.
Completion is anticipated in the coming months, pending customary closing conditions.
Spectris is a high-quality precision measurement and instrumentation company with two high-performance divisions, each offering market-leading technologies. Since 2018, its management team has successfully repositioned the business through portfolio rationalization and strategic investments, creating a more focused and higher-quality global company.
Advent, a global financial investor with significant capital, has long admired Spectris and believes it is well-positioned for future growth.
With a strong UK presence since 1989, Advent has invested £5.5bn in UK-based businesses, focusing on long-term growth and value creation.
Mark Williamson, the Chairman of Spectris, said:
“The Spectris management team have transformed the Spectris Group into a leading, sustainable business with high quality premium precision measurement solutions that enable customers to solve some of their greatest challenges. The Board remains confident in Spectris’ strategy and the opportunities that will be delivered over the medium term, but believes that Advent’s offer recognises the attractiveness of Spectris and represents strong and immediate cash value for shareholders at an attractive premium of 84.6 per. cent to the undisturbed share price.
The Board believes that the offer will benefit Spectris’ stakeholders and the operational and financial resources of Advent are expected to enhance opportunities for our employees and the Company.“
Commenting on the Acquisition, Andrew Heath, Chief Executive of Spectris, said:
“Since 2019, we have repositioned Spectris as a focused, high quality, compound growth business with advantaged positions in attractive end markets. I would like to recognise the exceptional contribution of my colleagues – their talent, insight and commitment continues to drive our success. The next chapter of Spectris’ development will further fuel their ambition and provide new opportunities.
Advent’s offer recognises the quality of Spectris, our talented people, and our strong growth prospects. In light of a strong set of intentions set out today, the Board have confidence that Advent is committed to supporting Spectris with investment that will drive growth and accelerate delivery of our strategic objectives.“