Key facts
- HB Fuller is acquiring Advanced Medical Solutions (AMS) for £659 million.
- The offer price is 285p per share, a 35% premium to the closing price on May 20.
- AMS's board has recommended the deal to shareholders.
- The acquisition will result in AMS delisting from the AIM market.
- The deal is expected to expand HB Fuller's total addressable market by $15 billion.
- AMS reported £229 million in revenue in the last calendar year.
US industrial adhesives manufacturer HB Fuller is set to acquire UK-based medtech firm Advanced Medical Solutions (AMS) for £659 million. The deal, announced on Thursday, values AMS at 285p per share, a 35% premium over its closing price on May 20.
AMS's board has recommended the acquisition to its shareholders, which will lead to the company delisting from London's AIM market. HB Fuller stated that the takeover will expand its total addressable market potential by $15 billion to $95 billion and will result in the establishment of a new standalone global "Medical Adhesive Technologies" business unit.
HB Fuller is financing the acquisition through short-term borrowing, with plans to secure permanent financing later. Upon completion, the combined unit's total debt is expected to be four times its annual earnings.
This acquisition marks another instance of foreign firms targeting UK companies. Earlier in the week, FTSE 100 real estate firm Segro rejected a £12.6 billion bid from US giant Prologis. The City has raised concerns over a series of unsolicited offers, with firms set to leave Britain's stock market valued at £43 billion. Other recent examples include Tate & Lyle being acquired by US rival Ingredion for £2.7 billion, and insurer Beazley and wealth manager Schroders being bought by overseas buyers.
In the last calendar year, AMS generated £229 million in revenue, a 29% increase from the previous year, driven partly by its takeover of medical devices distributor Peters Surgical. The company also increased its final dividend by 10% to 2.86p per share.