H.B. Fuller Co. has put forward an all-cash proposal for Advanced Medical Solutions Group Plc that values the British maker of tissue-healing medical products at in excess of £600 million ($804 million), according to a regulatory filing disclosed on Thursday.
The U.S. specialty chemicals company set a proposed valuation of more than 280 pence per share for AMS, which equates to a premium in excess of 30% relative to Wednesday's closing share price. The filing indicates the cash offer was submitted on April 30 and that H.B. Fuller is now engaged in discussions and conducting due diligence with the target.
The regulatory document did not specify the exact dollar or pound figure of the bid. It noted that, under UK takeover rules, H.B. Fuller is required either to announce a firm offer or to withdraw by June 18.
In the same filing, the Minnesota-based company cautioned there is no guarantee that a binding offer will ultimately be made. H.B. Fuller characterized itself as a "disciplined acquirer" and said it continues to assess other assets within the medical adhesives market.
Company statements included an acknowledgement that deliberations remain ongoing and that particulars of the proposal could evolve through further negotiation and examination.
Advisers and deal teams
Goldman Sachs Group Inc. and Perella Weinberg Partners are advising H.B. Fuller on the proposal, while Advanced Medical Solutions has engaged Evercore Inc. and Investec Plc as its financial advisers, according to the filing.
The development places a spotlight on the medical adhesives and tissue-healing product segments, and on how strategic consolidation might reshape competitive positioning in those corners of the healthcare supply chain.
What remains uncertain
Key open items include whether a binding offer will be submitted before the June 18 deadline and whether the terms will change as due diligence continues. The filing underscores the provisional nature of the proposal and the potential for negotiation to alter headline terms.