Spectris to buy US analytical instrument provider for USD630 million

(Alliance News) - Spectris PLC on Tuesday said it agreed to buy Micromeritics Instrument Corp.

The London-based company is a supplier of high-tech instruments, test equipment and software for industrial applications.

Spectris will acquire Micromeritics for an upfront consideration of USD630 million, which is to be followed by a deferred payment of up to USD53 million based on agreed financial performance metrics in 2024 and 2025.

Micromeritics is a Georgia, US-based developer of analytical instrumentation for the physical characterisation of particles, powders, and porous materials across research, product development, and quality control.

The consideration represents a multiple of almost 14 times expected 2024 earnings before interest, tax, depreciation, and amortisation of USD35 million, and run-rate cost synergies of USD12 million.

Spectris said the acquisition will be funded by a combination of existing cash resources and new external debt.

The transaction is due to be completed in the third quarter which ends September 30.

Chief Executive Officer Andrew Heath said: "The acquisition of Micromeritics fits perfectly with our strategy to build world-class businesses compounding growth and generating strong value creation for our customers and shareholders. Micromeritics is a high-quality business with a strong track record of growth and innovation with excellent growth prospects."

This latest acquisition follows the purchase of instrument maker SciAps Inc, a provider of handheld instruments and laser-based analysers, earlier this month.

Spectris shares were up 2.2% to 3,106.00 pence each in London on Monday morning.

By Elijah Dale, Alliance News reporter

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