Spectris Open to $5 Billion Takeover Bid from Advent, Shares Jump 70%
British scientific instruments maker Spectris (SXS.L) said it would accept a £3.73 billion ($5.06 billion) takeover offer from U.S. private equity firm Advent if a formal bid is made, sending its shares soaring 70% on Monday. The bid values Spectris at approximately £37.63 per share including dividends, representing an 85% premium over its last closing price.
Spectris’ shares had fallen sharply earlier this year, hitting an eight-and-a-half-year low in April amid trade policy uncertainties and weak demand. The company provides hardware and analytical software to industries such as pharmaceuticals, steel, and automotive across 36 countries.
JP Morgan analysts noted Spectris had long been seen as a takeover target due to its simplified portfolio and undervaluation relative to U.S. peers. The firm had previously said it expected to offset tariff impacts through surcharges.
The proposed takeover is the largest in the UK so far this year and comes amid a trend of acquisitions and subdued IPO activity affecting the London stock market. Advent must submit a formal offer by July 7 or abandon the bid, according to UK takeover rules.
Spectris’ board has indicated it would recommend the offer if formally presented. Despite the recent surge, the company’s shares remain down roughly 50% from their peak in September 2021.