H.B. Fuller, a U.S. adhesives manufacturer, has reached an agreement to acquire British medical supplier Advanced Medical Solutions (AMS) in a cash transaction that places the target's enterprise value at about £715 million including debt.
Under the terms announced, H.B. Fuller will pay 285 pence per AMS share, which equates to a 35% premium versus AMS’s closing price on May 20 - the trading day before the offer period began. AMS shares responded to the bid, rising 15.9% to 278.16 pence by 07:48 GMT on Thursday, a level that marked their strongest since February 2023.
The deal carries an anticipated completion timeline through to the end of 2026. Management of the combined group forecasts the transaction will deliver about $55 million in run-rate synergies on an annual basis by 2031. AMS’s board unanimously recommended the H.B. Fuller offer to the company's shareholders.
"This transaction is a rare opportunity to advance the evolution of our portfolio," said Celeste Mastin, President and CEO of H.B. Fuller. "We have long been clear that medical is a core strategic growth market for H.B. Fuller given its durable demand trends, high regulatory-based entry barriers, and margin profile."
From AMS’s perspective, the deal is expected to expand H.B. Fuller’s medical adhesives footprint across patients in the U.S., Europe and other markets.
"The combination would broaden the group’s medical adhesives offering to patients across the U.S., Europe and beyond," said Grahame Cook, chair of AMS.
The acquisition also brings to a close a period of private equity interest in AMS. The firms mentioned in that context included TA Associates, which withdrew from the process in May without making a formal offer, and Bridgepoint, which had been reported as a potential suitor.
Observers noted the transaction as another instance of overseas buyers pursuing companies listed in the U.K., a trend the announcement attributed in part to comparatively low domestic valuations. The offer and its terms now move to the next stages of shareholder consideration and regulatory and closing processes through the expected timeline to the end of 2026.
Market reaction and timetable
- Offer price: 285 pence per share, representing a 35% premium to the May 20 closing price.
- Immediate market response: AMS shares rose 15.9% to 278.16 pence by 07:48 GMT, their highest since February 2023.
- Expected close: by the end of 2026, subject to the usual conditions and approvals.
- Synergy target: approximately $55 million in annual run-rate synergies by 2031.