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(Sharecast News) - Advanced Medical Solutions shot higher on Thursday as it agreed to be bought by US adhesives maker H.B. Fuller for 715m.
Under the terms of the deal, H.B. Fuller will pay 285p per share in cash, which is a premium of 34.8% to the closing share price on 20 May.
AMS chief executive Chris Meredith said: "I have had the privilege of leading AMS for the last 15 years and the acquisition underscores the strategic progress we have made in this time and the strength of our product portfolio.
"As part of the combined larger medical adhesives platform, AMS and H.B. Fuller will benefit from enhanced commercial, manufacturing and distribution capabilities, which should accelerate the delivery of our strategy and broaden our offering to patients in the US, Europe and beyond."
H.B. Fuller CEO Celeste Mastin said: "Advanced Medical Solutions has built an exceptional business as a differentiated formulator with an innovation-led platform, an outstanding product suite, impressive R&D capabilities and a global commercial footprint with supporting regulatory expertise. The transaction is expected to result in significant revenue and cost synergies and accelerate our transformation into a higher-growth, higher-margin business.
"We remain committed to disciplined and balanced capital allocation and believe that the continued up-tiering of our portfolio, as well as the other steps we are taking to improve our cost structure and cash flow profile, will allow for robust de-leveraging post-acquisition."
At 0910 BST, the shares were up 15.4% at 277p.
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