Spectris to establish joint venture with Macquarie Capital for environmental monitoring business

14 December 2017 – Spectris plc (‘Spectris’) (LSE: SXS), the productivity-enhancing instrumentation and controls company, today announces that it has signed an agreement with Macquarie Capital, the corporate advisory and principal investment arm of Macquarie Group, for them to acquire 50% of Spectris’ environmental monitoring business EMS Brüel & Kjær (‘EMS B&K’) for a total cash consideration of AUD76.6 million (£43.4 million), subject to closing adjustments. The sale is expected to close early in the second quarter of 2018, subject to regulatory approvals in China, the European Union and South Korea. The net proceeds from the sale will be used to reduce net debt, thereby increasing the Group’s financial flexibility for future capital deployment.

EMS B&K is a global provider of environmental monitoring services to airports, cities, mines and construction companies. The business will now benefit from accelerated investment which will help create additional solutions and services that enable asset owners to monitor and manage their resources more effectively. Macquarie Capital’s expertise as a world-leading infrastructure advisor and investor will be of great benefit to the new joint venture in its next stage of development.

Commenting on the transaction, John O’Higgins, Chief Executive, said: “We are delighted to partner with Macquarie Capital. This joint venture creates a significant opportunity for us to collaborate on the industrial internet of things. We look forward to a successful working relationship with Macquarie Capital to deliver this.”

Daniel Wong, Global Co-Head of the Energy and Infrastructure group within Macquarie Capital, said: “This investment is an integral part of Macquarie Capital’s focus on technology applying to infrastructure (InfraTech). This is recognition that a number of technologies can now bring significant benefit in the construction, operation and maintenance of infrastructure assets. Macquarie looks to leverage its presence in the infrastructure sector and knowledge of technology to take a leading position in this space and we see this new venture with EMS B&K as a first step into this fast growing market.”

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Contacts:

Spectris plc
John O’Higgins, Chief Executive
+44 1784 470470

Clive Watson, Group Finance Director
+44 1784 470470

Siobhán Andrews, Head of Corporate Affairs
+44 1784 470470

FTI Consulting
Richard Mountain / Susanne Yule
+44 203 727 1340

ABOUT SPECTRIS

Spectris plc is a leading supplier of productivity-enhancing instrumentation and controls. The Company’s products and technologies help customers to improve product quality and performance, improve core manufacturing processes, reduce downtime and wastage and reduce time to market. Its global customer base spans a diverse range of end user markets. Spectris operates across four business segments which reflect the applications and industries it serves: Materials Analysis, Test and Measurement, In-line Instrumentation and Industrial Controls. Headquartered in Egham, Surrey, United Kingdom, the Company employs approximately 9,000 people with offices in more than 30 countries. For more information, visit www.spectris.com.

ABOUT MACQUARIE GROUP

Macquarie Group Limited (‘Macquarie’) is a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie employs 13,966 people in 27 countries. At 30 September 2017, Macquarie had assets under management of £277.2 billion. For further information, visit www.macquarie.com.

ABOUT MACQUARIE CAPITAL

Macquarie Capital is the advisory, capital markets and principal investment arm of Macquarie Group. Macquarie Capital provides strategic M&A and capital raising advice as well as partnering with clients by investing capital into their projects and companies. Globally, Macquarie Capital focuses on six core sectors: infrastructure, utilities and renewables; real estate; telecommunications, media, entertainment and technology; resources; industrials; and financial institutions.