Advanced Medical Solutions Group PLC (LSE:AMS) said on Thursday it has agreed to an all-cash takeover by US company HB Fuller Co.
Under the terms of the deal, AMS shareholders will receive 285 pence per share in cash, valuing the AIM-listed business at around £659 million and implying an enterprise value of approximately £715 million including debt.
AMS shares rose 16% to 278.61p in early London trading following the announcement.
In New York, HB Fuller shares closed 2.3% higher at $64.60 on Wednesday, before slipping 2.9% in pre-market trading on Thursday. The US adhesives manufacturer has a market capitalisation of about $3.52 billion and is based in St Paul, Minnesota.
The acquisition will be carried out through HB Fuller Medical Adhesive Technologies Inc, its wholly owned subsidiary. AMS, headquartered in Cheshire, produces surgical dressings and wound care products.
HB Fuller first confirmed its interest in AMS at the end of April, with its approach becoming public in May. Last week, AMS extended the deadline for the US group to make a firm offer to 2 July.
Earlier in May, AMS shares fell after private equity firm TA Associates (UK) LLP confirmed it would not proceed with a competing takeover bid, despite earlier exploratory discussions.
AMS said on Thursday that all of its directors, who collectively hold around 0.3% of the company’s shares, are recommending shareholders accept the offer.
Chair Grahame Cook described the deal as delivering “attractive and certain value in cash” to shareholders.
HB Fuller chief executive Celeste Mastin said the acquisition represented a strategic opportunity, highlighting medical products as a key growth area for the group due to strong demand trends, regulatory barriers to entry, and attractive margins.
Leave a Reply