H.B. Fuller to buy UK's Advanced Medical Solutions for $942 million (updated)
UPDATE 2-H.B. Fuller to buy UK's Advanced Medical Solutions for $942 million Adds Ancora's response, graphic
June 25 (Reuters) - U.S.-based adhesives maker H.B. Fuller FUL.N will buy Advanced Medical Solutions Group AMSU.L in a cash deal that values the British medical supplier at about £715 million ($942.1 million) including debt, the companies said on Thursday.
The British company's shares rose as much as 16.5% to 279.5 pence, their highest level since February 2023.
Here are some details:
H.B. Fuller to pay AMS shareholders 285 pence per share, a 35% premium to its May 20 closing price, the day before the offer period began.
Deal expected to close by end of 2026.
H.B. Fuller expects about $55 million in annual run-rate synergies by 2031 from deal.
Deal marks the latest overseas takeover of a London-listed company amid relatively low UK valuations and ends a long stretch of private equity interest in AMS.
"As part of the combined larger medical adhesives platform, AMS and H.B. Fuller will benefit from enhanced commercial, manufacturing and distribution capabilities," Grahame Cook, chair of AMS, said.
AMS board unanimously recommended the deal to its shareholders.
Ancora, an activist investor in H.B. Fuller, on Thursday criticised the U.S. firm's board for ignoring shareholder concerns, saying it will hold the board accountable for its "value destruction driven by entrenchment".
Ancora in May had urged the Minnesota-based company to abandon its "irresponsible" pursuit of AMS and conduct a strategic review instead.
($1 = 0.7590 pounds)
(Reporting by Nithyashree R B in Bengaluru; Editing by Subhranshu Sahu, Harikrishnan Nair and Susan Fenton)
((NithyashreeRB@thomsonreuters.com))