Advent International has submitted a $5.06bn takeover proposal for UK-based Spectris, with the target’s board confirming it would recommend a formal offer at the proposed valuation.

The bid values Spectris at £3.73bn, or £37.63 per share including dividends, an 85% premium to the company’s last closing price. Shares in the scientific instruments maker soared 70% following the announcement, marking their highest level since March 2024.

Spectris, which operates across 36 countries, provides precision measurement instruments and software to sectors including pharmaceuticals, automotive, and steel. The company had been grappling with weaker sales earlier this year due to economic uncertainty, prompting delays in deliveries and customer orders.

Advent’s interest follows multiple prior approaches and comes amid a broader wave of international buyers targeting UK-listed firms, whose valuations remain discounted relative to global peers.

“We and many investors have increasingly seen Spectris as a takeout target,” analysts at JP Morgan noted, citing the company’s portfolio simplification and valuation gap.

Under UK takeover rules, Advent must confirm its intention to proceed with a formal offer by 7 July. If successful, the transaction would mark the largest public-to-private deal in the UK so far this year and further highlight the ongoing pressure on the London stock market from foreign acquirers and subdued IPO activity.

Source: Reuters

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