Advanced Medical Solutions soars 16% as H.B. Fuller seals £715 million takeover

Investnigg.com -- U.S. adhesives manufacturer H.B. Fuller agreed to buy British medical supplier Advanced Medical Solutions in a cash deal valuing the company at around £715 million including debt, the latest in a string of overseas takeovers of London-listed companies.

H.B. Fuller will pay 285 pence per share, a 35% premium to AMS’s closing price on May 20, the day before the offer period began. AMS shares rose 15.9% to 278.16 pence on Thursday by 07:48 GMT, their highest level since February 2023.

The deal, which is expected to close by the end of 2026, is projected to generate around $55 million in annual run-rate synergies by 2031. AMS’s board unanimously recommended the offer to 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."

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 ends a prolonged stretch of private equity interest in AMS, including from TA Associates, which walked away in May without making a formal offer, and Bridgepoint, which had also been reported as a potential suitor.

The takeover is the latest example of overseas buyers targeting U.K.-listed companies, drawn in part by relatively low domestic valuations.

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