London Stock Market Suffers Fresh Blow as Spectris Backs £3.8 Billion Private Equity Offer

In a significant development that underscores the ongoing exodus from London’s stock market, FTSE 250 company Spectris has endorsed a £3.8 billion takeover bid from American private equity firm Advent International, potentially triggering a bidding war.

The precision instrumentation specialist’s board has recommended shareholders accept Advent’s cash offer of £37.63 per share, representing an 85 per cent premium to its pre-announcement closing price. The move comes as numerous London-listed technology businesses attract mounting interest from American investors.

KKR, a rival US investment firm, has emerged as a potential counter-bidder, having submitted an initial proposal on 2 June. The private equity giant has urged shareholders to refrain from action regarding the Advent offer, indicating it remains in “advanced stages of due diligence”.

Spectris, which has witnessed its shares plummet from over £40 in late 2021 to as low as £15, has struggled with declining revenues and profits amidst global trade tensions. The company’s chief executive, Andrew Heath, praised the offer as recognition of Spectris’s “quality, talented people, and strong growth prospects”.

Market analysts have long questioned the London market’s valuation of Spectris. Tom Fraine of Shore Capital noted the business was “probably a lot more attractive than the market gave it credit for”, highlighting its successful acquisitions and growth potential.

The potential sale of Spectris follows a pattern of British industrial technology companies being acquired by overseas buyers, raising fresh concerns about the London market’s ability to retain homegrown talent. Recent examples include Oxford Ionics’s $1.1 billion sale to IonQ and Alphawave IP Group’s £1.8 billion acquisition by Qualcomm.

The situation reflects a broader trend of UK companies trading at significant discounts to their international peers, making them attractive targets for foreign buyers. With average takeover premiums reaching 43 per cent, the persistent undervaluation of British assets continues to fuel debate about the future of London as a global financial centre.