Buyout giant KKR hit with double defeat in bid battles
US buyout giant KKR has been dealt a double blow after losing out in bidding wars for two British companies.
The private equity firm confirmed on Monday it had been trumped in its pursuit of high-tech instruments maker Spectris as the company instead opted for a rival £4.4bn bid from Advent.
This came after a KKR-led bid for Assura, the owner of hundreds of GP practices across the UK, was also rejected by the board in favour of a separate offer from listed fund PHP.
It marks a rare setback for the New York-based buyout firm, whose staff were once dubbed 'barbarians at the gates' for their aggressive culture.
KKR's wide-ranging takeover attempts in Britain also led to it being named as the preferred bidder for troubled utility giant Thames Water.
However, it abandoned a £4bn rescue bid earlier this month amid a row over fines and executive bonuses.
The private equity firm was founded in 1976 by Jerome Kohlberg, Henry Kravis and George Roberts with initial funding of $120,000 (£88,900)
Its assets under management now total $638bn, according to figures from the end of last year.
This includes a range of investments in the UK, including utility giant Northumbrian Water, PR firm FGS Global and festival operator Superstruct.
KKR is one of a number of private equity deals circling British companies amid an exodus from the London Stock Exchange.
But the buyout firm has been stymied in several of its recent efforts as competition for UK takeovers grows.
Spectris, which makes instruments and software for use in industries such as pharmaceuticals, said it had agreed a £4.4bn takeover by Advent International, which it said was 'fair and reasonable'. The FTSE 250 company had previously rejected two initial offers from KKR.
KKR on Monday said that while it had not made a revised proposal, it was in the 'advanced stages of due diligence and arranging financing commitments' and could still do so.
KKR's failed swoop for Assura comes after the NHS landlord recommended a £1.7bn bid tabled by the private equity firm alongside US infrastructure investor Stonepeak.
But the approach sparked a backlash from major Assura investors amid concerns the company would be taken off the stock market at too low a price.
Assura's board had previously said that the KKR bid offered 'materially less risk' than that of PHP. But it rowed back on Monday, saying PHP's fresh bid 'addressed some of the potential risks'.
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