Spectris has agreed to KKR’s takeover bid, valued at an enterprise price of £4.7bn.

As part of the deal, each Spectris share is valued at £40 in cash, which comprises £39.72 in cash from KKR and an interim dividend of 28 pence by Spectris.

The offer for FTSE 250-listed Spectris, a precision instrumentation and controls supplier, also represents a 6.3% premium on MI Metron UK’s £4.4bn bid, which was submitted last month.

The US private equity firm stated that it had been impressed by Spectris’ “reputation for product quality, application expertise and a leading position” following innovation and R&D investment.

It also commended the firm’s management team on its repositioning toward a “more focused a high-quality business”.

The directors at Spectris added that they intend unanimously recommend its shareholders to vote in favour of the deal.

Following the announcement, shares in Spectris increased by 4.2%.

Chairman at Spectris, Mark Williamson, said: "This offer reflects the excellent work of the Spectris management team in recent years to transform Spectris into a focused, high quality, premium precision measurement business that is well positioned for the future.

"While we remain confident in the opportunities for the business, KKR's offer provides attractive and immediate cash value for shareholders and a compelling vision for the future of the group that the board believes will be to the benefit of our stakeholders."

Partner at KKR, Joshua Weisenbeck, added: "Spectris is an impressive industrial technology business serving attractive end-markets such as life sciences, industrial automation, aerospace & defence, academia, and more.

"We believe there is an excellent fit in terms of our respective values, with a strong focus on its talented employees and supporting communities in which it operates. We have a long track record of investing in great UK companies and developing industrial technology businesses globally. We aim to build on these values, while investing to continue the transformation of Spectris as a global leader."

---