US-based adhesives company H.B. Fuller has announced a recommended cash offer to acquire UK-listed Advanced Medical Solutions (AMS) in a deal valued at approximately £715 million.
Under the terms of the agreement, AMS shareholders will receive £2.85 per share in cash.
H.B. Fuller’s President and CEO, Celeste Mastin, described the deal as a “rare opportunity” to strengthen and evolve the company’s portfolio.
“Advanced Medical Solutions has built an exceptional business as a differentiated formulator with an innovation-led platform, an outstanding product suite, impressive R&D capabilities, and a global commercial footprint with supporting regulatory expertise. The transaction is expected to result in significant revenue and cost synergies, and accelerate our transformation into a higher-growth, higher-margin business,” she said.
AMS specialises in surgical adhesive technologies. The acquisition is expected to expand H.B. Fuller’s capabilities in tissue bonding adhesives, surgical tapes, dressings, and biosurgicals. With the addition of these solutions, the company’s total addressable market (TAM) is expected to increase by $15 billion to $95 billion.
The deal is expected to create immediate commercial synergies, with AMS’s established European sales network complementing H.B. Fuller’s existing infrastructure in the United States. Both companies also anticipate cross-selling opportunities across their combined product portfolios.
In addition, AMS’s R&D team of more than 75 specialists and its manufacturing base in the UK, Germany, France, the Netherlands, Thailand and India are expected to strengthen H.B. Fuller’s global operations.
H.B. Fuller also sees AMS’s deep expertise in medical device regulatory pathways as a key advantage in accelerating expansion across the healthcare market, while reducing execution risk.
The company expects to capture approximately $55 million (approximately £41 million) in combined run-rate revenue and cost synergies by 2031, including the elimination of public company costs, rationalization of certain overlapping expenses, and sourcing savings.
H.B. Fuller has established a long-term target to achieve 5% annual constant currency revenue growth and EBITDA margins above 20%. AMS is expected to contribute roughly $300 million in annual revenue.
Following the acquisition, a new global business unit will be established for financial reporting purposes, and the segment is expected to account for approximately 10% of the combined company’s revenues and EBITDA.
Commenting on the announcement, AMS CEO Chris Meredith said, “As part of the combined larger medical adhesives platform, AMS and H.B. Fuller will benefit from enhanced commercial, manufacturing and distribution capabilities, which should accelerate the delivery of our strategy and broaden our offering to patients in the US, Europe and beyond.”
The transaction remains subject to shareholder approval, regulatory clearances, and other customary closing conditions. Completion is expected by the end of the calendar year.
H.B. Fuller noted its strong track record of acquisitions, having completed 11 deals since 2023.
