NSK Ltd. (TSE:6471) agreed to acquire Brüel & Kjær Vibro GmbH from Spectris plc (LSE:SXS) for approximately of £160 million on December 10, 2020. The net consideration will be funded by cash on hand and subject to locked box adjustments. In a related transaction, Spectris has agreed with UTAC CERAM to acquire certain subsidiaries constituting the Millbrook business from Spectris for a headline value of £133 million.

For the year ended December 2019, Brüel & Kjær Vibro GmbH reported revenues of £47.7 million. For the period ended June 30, 2020, Brüel & Kjær Vibro GmbH reported operating profit of £7 million and EBITDA of £8.3 million. The transaction is subject to customary completion conditions and regulatory approvals.

The transaction is expected to close in end of March 2021. Subject to the completion of both these disposals, Spectris plc will use the proceeds to further strengthen Spectris' balance sheet and then be deployed in accordance with its capital allocation policy. If the acquisition is completed, the impact on NSK's consolidated results will be minimal.

JPMorgan Securities Japan Co., Ltd. acted as financial advisor to NSK Ltd. Ernst & Young UK acted as legal advisor and provided due diligence to Spectris plc (LSE:SXS).