Shares in Advanced Medical Solutions (AMS) tumbled more than 20% after suitor TA Associates decided not to make an offer for the tissue-healing tech specialist.
The private equity outfit and Advanced Medical Solutions issued their respective statements after the market close on Friday evening. So today’s trading session was investors’ first opportunity to react to the news.
Led by CEO Chris Meredith, AIM-listed Advanced Medical Solutions’ board expressed confidence in the company’s standalone prospects despite TA Associates getting cold feet over a deal.
The board argued the current strategy ‘will continue to deliver sustainable growth and value creation for shareholders’.
Healthy standalone prospects
For the uninitiated, AMS is a woundcare specialist whose surgical product range spans tissue adhesives, sutures, haemostats and internal fixation devices.
The Cheshire-based company also supplies wound care dressings such as silver alginates, alginates and foams through its ActivHeal brand as well as under white label.
Research and development innovation hubs in the UK, Ireland, Germany, France and Israel mean the firm is well-positioned to roll out a steady stream of new products to fuel organic growth. And since 2019, the company has strengthened its competitive position with the help of seven acquisitions.
Attractive target
As such, it has popped up on the radar of a number of potential predators. Last year, Advanced Medical Solutions held talks with Montagu Private Equity before the prospective bidder walked away.
Another private equity player, Bridgepoint (BPT), has also been linked as a potential buyer for dividend-paying Advanced Medical Solutions.
Advanced Medical Solutions is a business putting up very healthy numbers indeed. So in our view, today’s share price plunge presents a good entry point for new investors.
Management can now focus on US and international expansion and improving operational efficiency without the distraction of takeover talks. On 18 March, Advanced Medical Solutions announced record results for FY25. Adjusted pre-tax profits grew 15% to £33.9 million on sales up 29% to £228.9 million.
The company insisted it entered FY26 with ‘strong commercial momentum, a clearer operating platform and a robust pipeline that supports multi‑year growth’. Furthermore, Advanced Medical Solutions stressed it has a ‘limited footprint’ in the Middle East and ‘minimal exposure’ to the war-torn region as a result.
Read the press release here: https://admedsol.com/investor-relations/
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