Advanced Medical Solutions Group, the AIM-listed developer and manufacturer of surgical tissue-healing products, has agreed to a recommended cash acquisition by H.B. Fuller Medical Adhesive Technologies, that values the business at 285p a share, or £695 million.
The deal is structured as a scheme of arrangement, with AMS directors unanimously recommending the terms as fair and reasonable following advice from joint financial advisers Evercore and Investec.
H.B. Fuller, which bills itself as the world's largest pure-play adhesives provider with approximately 7,100 employees and 77 plants globally, expects the acquisition to lift its total addressable market from $80 billion to $95 billion and add around 100 basis points to its consolidated EBITDA margin within 24 months.
The combined group is targeting approximately $55 million in run-rate revenue and cost synergies by 2031, split between around $20 million in commercial synergies and $35 million in cost savings, with more than half expected to be realised by 2028.
AMS brings a pan-European salesforce, manufacturing sites across the UK, Germany, France, the Netherlands, Thailand and India, and a portfolio spanning tissue adhesives, biosurgicals and surgical closures sold under brands including LiquiBand and RESORBA.
"The acquisition underscores the strategic progress we have made and the strength of our product portfolio," said AMS chief executive Chris Meredith.
Completion is conditional on merger control clearances in Austria, Germany, the UK and the United States, as well as foreign investment approvals in Austria, France and Luxembourg.
