DAVY VIEW

Spectris has agreed the sale of Red Lion Controls for a gross consideration of $345m. It has also been confirmed that Servomex will stay within the group, moving into Spectris Scientific. These two moves complete the disposal part of the strategy set out in 2019. With additional M&A firepower and the near-term share price support from £50m of the new £150m share buyback, we see the jigsaw pieces moving together for a renewed bid for Oxford Instruments. We that in mind, we cautiously maintain our ‘Neutral’ stance.