Shares in Advanced Medical Solutions (AMS:AIM) surged to a two-year high after the tissue-healing tech specialist confirmed it is in takeover talks with TA Associates.
The Cheshire-based business was responding to recent press speculation surrounding a potential private equity bid. However, the company cautioned there can be no certainty a firm offer will be made, or on what terms.
Last year, Advanced Medical Solutions held talks with Montagu Private Equity before the prospective suitor walked away. Another private equity player, Bridgepoint (BPT), has also been linked as a potential buyer for this fast growing and dividend-paying company.
Predator turned prey
Led by CEO Chris Meredith, Advanced Medical Solutions is a woundcare specialist. Its surgical product range spans tissue adhesives, sutures, haemostats and internal fixation devices.
Since 2019, the company has strengthened its competitive position with the help of seven acquisitions.
Group revenue increased by 29% to £228.9 million in FY25. Pre-tax profits powered 81% higher to £17.8 million thanks to organic growth and a first full year contribution from the Peters Surgical acquisition.
However, the downwards share price drift of recent years left Advanced Medical Solutions vulnerable to a takeover.
No financial terms related to an offer were disclosed in today’s statement. So shareholders will be hoping the board resists a low-ball offer or that a bidding war breaks out. After all, Advanced Medical Solutions is a business in rather rude health.
On 18 March, the company posted record results for FY25. Advanced Medical Solutions also insisted it entered FY26 with ‘strong commercial momentum, a clearer operating platform and a robust pipeline that supports multi‑year growth’.
Read the press release here: https://admedsol.com/investor-relations/
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