Spectris has agreed to a £4.4bn acquisition offer by Advent’s subsidiary of funds, MI Metron UK.

Under the offer, each Spectris shareholder will be entitled to received £37.63 in cash, which comprises of £37.35 in cash from MI Metron UK and an interim dividend of 28 pence to be paid by Spectris.

Advent, a US global equity investor, has operated in the UK since 1989 and invested over £5.5bn in UK-headquartered businesses.

The US firm said it has "long admired Spectris" and been impressed by its business repositioning since 2018. It believes that the FTSE 250-listed supplier of precision instrumentation and controls is now "well-placed to capitalised on future growth opportunities".

Managing partner at Advent, Shonnel Malani, said the acquisition represents Advent’s "vote of confidence in British engineering and innovation".

He added: "As active partners, we are dedicated to accelerating Spectris' growth and enhancing its leadership in precision measurement. With its talented people and proven track record of driving breakthroughs across industries, we are poised to invest in its continued success, pushing the boundaries of technological progress, expanding its global reach, and delivering transformative solutions to the world's most dynamic sectors."

Investment director at AJ Bell, Russ Mould, stated that Advent’s deal rival, KKR, must move quick if it wants to challenge in the takeover of the UK-instrumentation supplier.

He concluded: "Advent has struck a deal to buy Spectris at a chunky premium to the market value before bid interest was revealed earlier this month. Spectris’ board has recommended the all-cash offer and it’s now up to shareholders to vote on it. KKR has already expressed interest in Spectris and will need to make a formal offer fast if it stands a chance of derailing the Advent bid.

"The fact we’ve got two bid battles in Spectris and Assura just goes to show how the UK stock market continues to be on sale. If investors don’t recognise the good value opportunities on offer, trade buyers or private equity firms will keep swooping on targets and pick them off one by one."

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