The takeover saga at Advanced Medical Solutions (LON:AMS) appears to be finally drawing to a close. The AIM-listed surgical products maker has agreed a £660 million takeover by US peer HB Fuller (NYSE:FUL).
Fuller follows through
Having revealed its interest on 21 May, HB Fuller announced today it had reached agreement on a 285p cash offer. The price represents a 35% premium to the close on 20 May and a 19% premium on last night’s close.
AMS had previously been in buyout tallks with private equity firm TA Associates. On 18 May, AMS shares tumbled 19% to 201p after TA declined to make an offer for the firm.
Earlier this month, activist shareholder Ancora Holdings pressed HB Fuller not to make an offer for AMS. Ancora called the deal ‘an extremely risky, quasi-transformational acquisition’, and urged the US firm to conduct its own strategic review.
Conversely, HB Fuller claims the acquisition brings it a larger addressable market and enhanced R&D (research and development) capability. It also says it has identified around $55 million (£42 million) of synergies in combined run-rate costs and revenue by 2031.
AMS shareholders have been dealt a Get Out Of Jail Free card considering where the stock was trading just over a month ago. The last time the shares traded at 285p was in late 2022/early 2023, so HB Fuller is paying up despite objections from activist Ancora.
Including today’s deal, there are nearly 40 offers on the table according to the Stock Exchange, which might be a record. What that tells us is the UK market is still cheap and industrial buyers in particular are making hay.
If institutions decide to increase their historically low weightings in UK stocks even by a few percent, it could turbo-charge the market. Investors shouldn’t wait, however – there are bargains galore out there, so do your research and make up a short list.
Read the press release here:
