US adhesives manufacturer HB Fuller has agreed to acquire Advanced Medical Solutions (AMS), a Wilmslow-based medtech company listed on London's AIM market, in a deal valuing the firm at £659m. The acquisition marks another significant blow to London's junior stock exchange as overseas buyers continue to target UK firms.
Deal terms and premium
HB Fuller announced on Thursday that it would pay 285p per share in cash for AMS, representing a 35% premium to the company's closing price of 212p on 20 May, the last trading day before the offer period began. The AMS board has unanimously backed the acquisition and recommended it to shareholders, according to City AM.
The Minnesota-based industrial adhesives and chemical products specialist said the transaction would expand its total addressable market by $15bn to $95bn. Following completion, HB Fuller plans to create a new standalone global "Medical Adhesive Technologies" business unit, which will account for approximately 10% of the combined group's revenue and earnings.
Financing and debt
HB Fuller is financing the acquisition through short-term borrowing facilities until permanent funding is arranged. Upon completion, the combined unit's total debt is expected to be four times its annual earnings. The takeover will result in AMS delisting from AIM, further reducing the number of companies on London's junior market.
Wave of overseas takeovers
The agreement with HB Fuller is the latest example of foreign firms acquiring UK companies. Earlier this week, FTSE 100 property group Segro rejected a £12.6bn approach from US giant Prologis, which made its offer public in an attempt to gain shareholder support. The City has raised alarms over a surge of unsolicited bids, with the combined value of firms set to leave Britain's struggling stock market reaching £43bn earlier this year.
Other notable takeovers include Tate & Lyle being acquired by US rival Ingredion for £2.7bn, as well as blue-chip insurer Beazley and wealth manager Schroders being snapped up by overseas buyers.
AMS financial performance
Over the last calendar year, AMS generated £229m in revenue, a 29% increase from the £177.5m recorded in 2024. The growth was primarily driven by its acquisition of Peters Surgical, a medical devices distributor and manufacturer. The company paid a final dividend of 2.86p per share, a 10% rise on the previous year.
