KKR Strikes Back: $5.6 Billion Bid Could Flip the Script on London's M&A Drought

KKR KKR is swinging hard again. After a streak of misses in the UK, the U.S. private equity giant just put 4.1 billion ($5.6 billion) on the table to acquire Spectris Plcthe British precision testing equipment company. That's a 96.3% premium to Spectris' share price before buyout rumors hit in early June. And this time, KKR isn't just offering cash. It's offering equity ownership to Spectris employees, a move that might tip the scales in its favor. The board, which previously turned down a conditional KKR proposal, is now on board. But this could still turn into a bidding warAdvent, the original suitor, hasn't made its final move.

It's been a frustrating run for KKR in the UK. In May, it pulled out of talks to acquire analytics firm GlobalData. Then in June, it lost out on Assura Plc after the board sided with Primary Health Properties, a strategic player. Even outside of listed companies, KKR backed away from investing 4 billion in Thames Water following extended due diligence. And yet, the firm isn't slowing down. A spokesperson noted that KKR has invested nearly 4.5 billion in UK equity over the past 18 months, across deals like Viridor (waste management), ERM (sustainability), and Dawsongroup (asset leasing).

So why keep hunting in London? It's simple. UK assets are cheapand KKR knows it. According to Peel Hunt, U.S. private equity firms made over a quarter of all UK bids in the first half of the year. Charles Hall, Peel Hunt's head of research, calls the UK a happy hunting ground for buyout firms. And KKR is playing the long game. After deals in Sweden and broader Europe, the Spectris offer could mark a turning point in its international push. But Advent might not go quietly. This story's far from over.