DAVY VIEW

Hot on the heels of the announced £205m SciAps acquisition a few weeks ago, Spectris has now agreed to acquire Micromeritics Instrument Corp. for an upfront consideration of $630m (£485m). This will add c.10% to CY25 consensus forecasts and bring in a market-leading, double-digit revenue growth business to combine with Malvern Panalytical. The initial EV/EBITDA multiple is 18x, with scope to reduce to nearer 14x with cost synergies. Spectris is buying growth, in our view, and we remain comfortable with our ‘Underperform’ rating