The KKR offer includes 41.75 pounds in cash for each share of the company, including an interim dividend of 28 pence for fiscal 2025.
Private equity firm KKR & Co. (KKR) raised its offer for UK-based Spectris to 4.2 billion euros ($5.6 billion) in its latest attempt to outbid rival buyout firm Advent.
The new offer comes days after a bid from Advent, which the Spectris board had approved. The KKR offer values Spectris at 4.8 billion euros, including debt, and includes 41.75 pence in cash for each share of the company, along with an interim dividend of 28 pence for fiscal 2025.
Over the past month, KKR has been battling for Spectris, a company that develops high-tech instruments, testing equipment, and software used in various sectors, including life sciences. The U.S.-based private equity firm said that Spectris commands such a valuation as it is an attractive asset, particularly after it trimmed costs and sold assets to focus on “higher quality businesses.”
The latest offer implies a premium of 1.8% compared to Advent’s last offer, and more than double its share price since June 6, when media reports hinted at a potential deal. The Spectris board said it will back the offer.
Retail sentiment on Stocktwits about KKR was in the ‘bullish’ territory at the time of writing.
The relatively low valuation of UK companies and relative policy stability have attracted overseas buyers, such as KKR. The bidding war began after Spectris’ valuation halved compared to its 2021 peak.
In the second quarter, KKR raised $28 billion of capital and noted that it “continues to see meaningful progress across asset classes.”
KKR stock has slipped 2.8% this year, compared with 7.1% gains in the SPDR S&P 500 ETF Trust (SPY).
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