June 25 (Reuters) – U.S.-based adhesives maker H.B. Fuller will buy Advanced Medical Solutions Group in a cash deal that values the British medical supplier at about £715 million ($942.1 million) including debt, the companies said on Thursday.
The British company’s shares rose 15.8% to 278 pence, the highest level since February 2023.
Here are some details:
• H.B. Fuller to pay Winsford-based company shareholders 285 pence per share, a 35% premium to its May 20 closing price, the day before the offer period began.
• Deal expected to close by end of 2026.
• H.B. Fuller expects the deal to generate about $55 million in annual run-rate synergies by 2031.
• Deal marks the latest overseas takeover of a London-listed company amid relatively low UK valuations.
• Ends a long stretch of private equity interest in AMS, including TA Associates, which walked away in May without bidding, as well as reported interest from Bridgepoint.
• “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,” Grahame Cook, Chair of AMS, said.
• AMS board has unanimously recommended the deal to its shareholders.
• As of last close, AMS shares have risen 16% since H.B. Fuller launched its unsolicited bid on May 20.
• In May, activist Ancora urged the Minnesota-based H.B. Fuller to abandon its “irresponsible” pursuit of AMS and conduct a strategic review.
• Ancora did not immediately offer a response for Reuters’ request for comment on the deal. ($1 = 0.7590 pounds)
(Reporting by Nithyashree R B in Bengaluru; Editing by Subhranshu Sahu and Harikrishnan Nair)
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