Medical Adhesives Acquisition
HB Fuller Launches £659M Offer to Acquire AMS, Expanding Global Medical Adhesives
Key Points
The offer values AMS at about £2.85 per share, equating to roughly a 35% premium to AMS’s May 20 closing price, with an enterprise value around £715 million.
AMS brings a differentiated portfolio including tissue adhesives, internal fixation devices, sealants and dressings, marketed under brands such as LiquiBand, RESORBA and ActivHeal, expanding HB Fuller’s medical adhesives capabilities.
The deal is expected to generate around $55 million in annual run-rate synergies by 2031, comprising about $20 million in commercial synergies and $35 million in cost savings.
The transaction will be implemented via a UK scheme of arrangement under the Companies Act 2006 and requires regulatory clearances in multiple jurisdictions, including Austria, Germany, the United Kingdom, the United States, France and Luxembourg.
H.B. Fuller, the world's largest pure-play adhesives company, has made a recommended cash offer to acquire UK-listed Advanced Medical Solutions (AMS) at £2.85 per share — a 34.8% premium to AMS's May 20 closing price of 212 pence, according to H.B. Fuller Investor Relations. The deal values AMS's equity at roughly £659 million, with a total enterprise value of £715 million including debt.
The acquisition, announced on June 25, 2026, would add around $300 million in annual revenue to Fuller's existing $3.46 billion base and expand its total addressable market by $15 billion to roughly $95 billion, according to Investing.com. AMS shares surged 15.9% to 278 pence on the announcement — still slightly below the offer price, hinting at minor investor caution over regulatory hurdles.
AMS's Medical Portfolio Drives Fuller's Strategic Push
AMS makes surgical tissue adhesives, wound dressings, sealants, and internal fixation devices. Its brands — LiquiBand, RESORBA, and ActivHeal — are sold across Europe and beyond. H.B. Fuller CEO Celeste Mastin called the deal a "rare opportunity" to enter a "structurally scarce" category of high-quality medical assets, according to Fidelity Investments. She described medical as a "core strategic growth market" for the company.
AMS had already transformed itself before this deal. In July 2024, it acquired Peters Surgical for €132.5 million, pushing its surgical segment to roughly 80% of total group revenue, according to Seeking Alpha. That made it an even more attractive target — AMS had reportedly fielded at least five private equity approaches in 18 months, including from TA Associates and Bridgepoint, all of which fell apart over valuation gaps.
Ancora Calls the Deal Reckless, Fuller Pushes Back
Not everyone is on board. Ancora Holdings, which owns more than 2% of H.B. Fuller, released an open letter on May 23 calling the deal "reckless" and a "de facto poison pill." Ancora's Fred DiSanto and James Chadwick warned the move was "completely out of management's depth" and threatened a proxy fight if Fuller's board did not pivot to a full strategic review of the company instead.
Fuller responded on May 26, defending its M&A track record — citing 13 acquisitions since 2023 — and committing to de-leverage after the deal closes. Critics point to a valuation gap: Fuller trades at roughly 7.5x EBITDA, yet it is buying AMS at 12.9x pre-synergy EBITDA, according to Investing.com. Fuller says that multiple drops below 8x once synergies are factored in.
$55 Million in Synergies Targeted by 2031
Fuller expects the combined business to generate $55 million in annual run-rate synergies by 2031. That breaks down as $20 million in commercial synergies — mainly cross-selling and U.S. market expansion through AMS's European salesforce — and $35 million in cost savings, according to H.B. Fuller's announcement. AMS brings 17 manufacturing and R&D sites and more than 1,800 employees across the UK, Germany, France, and Ireland.
On debt, Fuller admits its net debt-to-EBITDA ratio will rise above its comfort zone initially. Ancora predicts it will exceed 4.0x. But Fuller's management has committed to returning to a 2.5x–3.0x range within two years, according to Fidelity Investments. AMS chair Grahame Cook backed the deal unanimously, saying it "delivers attractive and certain value in cash to AMS Shareholders."
Regulatory Approvals Needed Across Six Countries
The deal will be structured as a UK scheme of arrangement under the Companies Act 2006. That means AMS shareholders must vote to approve it. Regulatory sign-offs are required in six countries: the UK, US, Germany, Austria, France, and Luxembourg, according to au.investing.com. The Austria and Luxembourg filings are especially complex due to AMS's local distribution unit and holding structures.
The timeline has already shifted once. An initial "Put Up or Shut Up" deadline — triggered when AMS confirmed Fuller's approach on May 21 — was extended in June as talks entered their final stage. The formal offer came on June 25. If all clearances are granted, the combined company would form what Fuller calls a "global platform" linking AMS's surgical technologies with Fuller's manufacturing scale across the US, Europe, and beyond.
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