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H.B. Fuller Buys AMS for $715M
15 Aug
Summary
- Shareholders approved the sale of Advanced Medical Solutions.
- H.B. Fuller expects to close the $715 million deal by year-end.
- Acquisition strengthens H.B. Fuller's medical business segment.
Advanced Medical Solutions Group (AMS) shareholders have approved the company's sale to H.B. Fuller for 715 million pounds. This approval, disclosed recently, clears a major hurdle for the deal's completion, which H.B. Fuller expects to finalize by the close of the year.
The acquisition is poised to significantly bolster H.B. Fuller's medical segment. The company aims to boost its medical earnings before interest, tax, depreciation, and amortization to $100 million in the near term. AMS, a U.K.-based producer of tissue-healing technologies, will integrate into H.B. Fuller's existing operations.
H.B. Fuller, known for its adhesives and sealants, has identified the medical sector as a key growth area. With last year's medical adhesive sales at $68 million and AMS's revenues at $302 million, the combined entity will see medical sales represent 10% of H.B. Fuller's total business. This expansion will add formulated biosurgicals and mechanical closures to its portfolio.
The deal will move H.B. Fuller into new product areas, including antibiotic-coated collagens and bone scaffolding devices from AMS. Surgical adhesives and mechanical closures, AMS's largest segments, will form a substantial part of the integrated offerings, collectively representing two-thirds of AMS's sales last year.
