HB Fuller agrees to acquire Advanced Medical Solutions in £659m UK medtech takeover

The US manufacturer – which specialises in industrial adhesives and chemical products – has offered 285p per share in cash for AMS

A US adhesives manufacturer is poised to deliver another setback to London’s junior stock market after agreeing to buy medtech firm Advanced Medical Solutions.

HB Fuller announced on Thursday it would acquire the AIM-listed Cheshire company in a transaction valuing it at £659m.

The US manufacturer – which specialises in industrial adhesives and chemical products – put forward an offer of 285p per share in cash for Advanced Medical Solutions (AMS).

The bid represents a 35 per cent premium to its closing price of 212p on 20 May, the final trading day before the offer period commenced.

AMS’ board has backed the acquisition, which will result in its delisting from AIM, and recommended it to shareholders, as reported by City AM.

Minnesota-based HB Fullersaid the transaction would broaden its total addressable market potential by $15bn to $95bn. It added that following the takeover it would create a new standalone global “Medical Adhesive Technologies” business unit, which will represent roughly 10 per cent of the combined group’s revenue and earnings.

HB Fuller is financing the deal through short-term borrowing facilities until permanent funding is arranged. Upon completion, the combined unit’s total debt will stand at four times its annual earnings.

The agreement with HB Fuller represents the latest example of overseas firms swooping on UK companies.

Earlier this week, FTSE 100 property firm Segro turned down a £12.6bn approach from US giant Prologis, which made its offer public in an attempt to drum up shareholder backing. The City sounded the alarm earlier this year over a wave of unsolicited bids that pushed the combined value of firms set to depart Britain’s struggling stock market to £43bn.

Tate & Lyle was acquired by US rival Ingredion for £2.7bn, while blue-chip insurer Beazley and wealth manager Schroders were also snapped up by overseas buyers.

Over the last calendar year, Winsford-based AMS generated £229m in revenue, a 29 per cent increase from the £177.5m recorded in 2024, driven primarily by its acquisition of medical devices distributor and manufacturer Peters Surgical.

The company paid out a final dividend of 2.86p per share, representing a 10 per cent rise on 2024.