U.S. adhesives manufacturer H.B. Fuller has reached an agreement to purchase Advanced Medical Solutions Group, a British medical supply company, in an all-cash transaction valuing AMS at roughly £715 million — or about $942.1 million including debt — the two companies announced Thursday.
News of the deal sent AMS shares climbing 15.8% to 278 pence, their highest point since February 2023.
Here are the key details of the agreement:
H.B. Fuller will pay shareholders of the Winsford-based company 285 pence per share. That price represents a 35% premium over AMS’s closing share price on May 20, the day before the offer period officially kicked off.
The transaction is anticipated to wrap up before the close of 2026, and H.B. Fuller projects the combined business will generate roughly $55 million in annual run-rate synergies by 2031.
The acquisition is the latest in a string of overseas companies snapping up London-listed businesses, a trend driven in part by relatively low valuations in the UK market.
The deal also brings to a close a prolonged period of private equity interest in AMS. Investment firm TA Associates had been eyeing the company but walked away in May without placing a bid, while Bridgepoint was also reported to have shown interest.
Grahame Cook, Chair of AMS, expressed confidence in the combined company’s future, stating: “As part of the combined larger medical adhesives platform, AMS and H.B. Fuller will benefit from enhanced commercial, manufacturing and distribution capabilities, which should accelerate the delivery of our strategy and broaden our offering to patients in the US, Europe and beyond.”
The AMS board has voted unanimously to recommend that its shareholders approve the deal. Since H.B. Fuller launched its unsolicited bid on May 20, AMS shares have gained 16% through the most recent market close.
Not everyone has been supportive of the transaction. In May, activist investor Ancora called on Minnesota-based H.B. Fuller to drop what it described as an “irresponsible” pursuit of AMS and instead conduct a broader strategic review of its business. Ancora had not provided a response to requests for comment on the finalized deal as of the time of reporting.
