Advanced Medical Solutions Group (AMS) has accepted a £659m takeover offer from the US adhesives manufacturer, H.B. Fuller.

Shareholders in the wound care dressing technologies manufacturer will receive £2.85 per share, representing an almost 35% premium on its closing share price on 20 May, which is the last business day prior to the commencement of the offer period.

H.B. Fuller said the takeover would increase its total addressable markets from $15bn to $95bn and extend its capabilities across tissue bonding adhesives, tapes and dressings, and formulated biosurgicals.

Its acquisition of AMS, which operates in 22 locations, is also set to increase the US firm's annual revenue by $300m and create earnings compounding opportunities.

Following advice from Evercore and Investec as to the financial terms of the acquisition, AMS’s directors consider the terms as "fair and reasonable".

Following the acquisition announcement, shares in AMS jumped by almost 16%.

CEO at AMS, 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."

CEO at H.B. Fuller, Celeste Mastin, described the deal as a "rare opportunity" to advance the evolution of its portfolio.

She concluded: "AMS 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."

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