Morning all, Craig McGlashan bringing you the Europe Wire from the London newsroom.
KKR’s competition with Advent to take precision instruments provider Spectris private is heating up, with the former winning board backing for a new bid. But away from the specifics of that deal, its size is a sign that confidence is returning to UK large-cap dealmaking, sources tell me.
Elsewhere, we look at some M&A news in a sector that’s enjoying many tailwinds: European defense. That gives us the opportunity to revisit some of our analysis of the industry.
We finish with a deal in academia, where Graphite Capital has sold its stake in Empowering Learning Group to THI Investments.
Coming back
KKR has come out fighting on a take-private where the target’s board had backed a rival bid. But while the US private equity giant’s bullishness might be bad news for its competitor on the deal, it’s a sign of strength for the UK large-cap market.
The board of Spectris, a London-based provider of precision instruments to industries including pharmaceuticals and semiconductors, said this morning that it had agreed terms on a recommended cash acquisition by KKR.
Read the premium version of the Wire to find out the multiple and how much it offers over Advent's rival bid, as well as why it's a vote of confidence for the wider market.
Defensive M&A
KKR was attracted to Spectris thanks to some of its end-markets, including aerospace and defense, according to a statement from partner Joshua Weisenbeck.
Private equity’s growing interest in the defense sector is something we’ve been looking at in depth on PE Hub for a while, and there are more signs of M&A in the sector increasing.
Check out our analysis in the premium version of the Wire.
Learning curve
Let’s finish with another sector that Spectris works in: academia.
Graphite Capital has sold its stake in Empowering Learning Group to THI Investments.
Details including turnover are in the premium version of the Wire.
That’s all from me today. Rafael Canton will write to you from the US later today and Nina Lindholm will take the Europe reins tomorrow.
Cheers,
Craig
Read the full Wire commentary on PE Hub ...
