US glue maker swoops on AIM-listed manufacturer in £659m deal
A US glue maker is set to hand London’s junior stock market another blow after snapping up medtech firm Advanced Medical Solutions.
HB Fuller said on Thursday it would acquire the AIM-listed company in a deal that values it at £659m.
The US manufacturer – which specialises in industrial adhesives and chemical products – offered 285p per share in cash for Advanced Medical Solutions (AMS).
It marks a 35 per cent premium over its closing price of 212p on 20 May, the last business day before the offer period.
AMS’ board has recommended the acquisition, which will lead to it delisting from AIM, to shareholders.
The Minnesota-based firm said the deal would expand its total addressable market potential by $15bn to $95bn. It added that on the back of the takeover it would establish a new standalone global “Medical Adhesive Technologies” business unit, which will account for around 10 per cent of the combined group’s revenue and earnings.
HB Fuller is funding the deal through a short-term borrowing arrangement until permanent financing is secured. Once it is completed the combined unit’s total debt will be four times its annual earnings.
Foreign firms target Britain’s stock market
The deal with HB Fuller marks the latest in a string of foreign firms pouncing on UK companies.
Earlier this week, FTSE 100 real estate firm Segro rejected a £12.6bn bid from US giant Prologis, which took its offer public in a bid to strum up shareholder support.
The City raised the alarm earlier this year on a flurry of unsolicited offers that took the combined value of firms set to leave Britain’s ailing stock market to £43bn.
Tate & Lyle was snapped up by US rival Ingredion for £2.7bn, while Blue-chip insurer Beazley and wealth manager Schroders were also plucked off the market by overseas buyers.
In the last calendar year, AMS made £229m in revenue, a 29 per cent rise from the £177.5m scored in 2024. This was primarily driven by its takeover of medical devices distributor and manufacturer Peters Surgical.
It dished out a final dividend of 2.86p per share, which marked a 10 per cent increase over 2024.