H.B. Fuller agrees $942m AMS takeover

The deal marks the latest overseas takeover of a UK-based company.

U.S. adhesives manufacturer H.B. Fuller has agreed to acquire UK-based Advanced Medical Solutions (AMS) in a GBP715 million ($942 million) cash deal, marking another overseas takeover of a London-listed company.

Under the terms of the agreement, AMS shareholders will receive 285 pence per share in cash, representing a 35% premium to the company's pre-offer price.

The board of Advanced Medical Solutions has unanimously recommended that shareholders approve the transaction, which is expected to complete by the end of 2026, subject to shareholder and regulatory approvals.

The acquisition strengthens H.B. Fuller's position in the fast-growing medical adhesives market, adding AMS's portfolio of wound care, tissue repair, and surgical sealant technologies to its existing healthcare business.

The U.S. company expects the transaction to generate approximately $55 million in annual run-rate revenue and cost synergies by 2031 through procurement efficiencies, manufacturing optimization, and the elimination of public company costs.

For AMS, the deal provides shareholders with an immediate cash exit following months of takeover interest.

Earlier this year, private equity firm TA Associates abandoned discussions over a potential GBP600 million ($810 million) offer before H.B. Fuller emerged with an unsolicited proposal that was subsequently backed by the company's board.

However, activist investor Ancora criticized H.B. Fuller’s pursuit of AMS earlier this year and has argued management should instead prioritize a strategic review.

Following the announcement of the agreed deal, Ancora reiterated its opposition, saying it would hold the board accountable if the acquisition failed to deliver value.

The transaction also underscores the continuing appeal of UK-listed companies to overseas acquirers, many of whom view London market valuations as attractive relative to international peers.

A series of cross-border bids has highlighted concerns that quality UK businesses remain undervalued despite improving equity market conditions. Recent examples include Elliott’s campaign pushing Bunzl to pursue a split, Easyjet fighting off a bid from Castlelake, and Trian’s take-private of Janus Henderson.

For investors, attention will now turn to shareholder approvals, regulatory clearance and whether H.B. Fuller can deliver the projected synergies while successfully integrating AMS into its expanding healthcare portfolio.

H.B. Fuller’s stock was pre-market trading at $62.60 at 5:42 on Friday in New York, up 1% from Thursday’s close. The stock is up 4.9% year-to-date.

Advanced Medical Solutions’ stock, meanwhile, was trading at GBP2.78 at 11:00 on Friday in London, remaining level.

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