Shares in Advanced Medical Solutions Group (AIM:AMS) rose 16% to 278.14p after the company agreed to a recommended cash takeover by H.B. Fuller, the US adhesives group, valuing it at about £659 million.
Under the terms, shareholders in AMS, the AIM-listed surgical adhesives and wound-care specialist, will receive 285 pence in cash for each share.
The offer represents a premium of 34.8% to the closing price of 212 pence on 20 May, the last trading day before the offer period began.
It implies an enterprise value of about £715 million.
H.B. Fuller, the world's largest pure-play adhesives maker and listed in New York, is buying AMS through a wholly owned subsidiary.
The US company said the deal would extend its reach across tissue bonding adhesives, tapes and dressings, and formulated biosurgicals, lifting its addressable market by $15 billion to $95 billion.
It expects to generate about $55 million, or roughly £41 million, in annual revenue and cost synergies by 2031, including the removal of public company costs and sourcing savings.
The transaction is expected to add about 100 basis points to the combined group's earnings margin within 24 months and increase annual revenue by around $300 million.
Founded in 1991 and based in Winsford, AMS employs more than 1,800 people across 22 locations and sells into more than 100 countries under brands including LiquiBand and RESORBA.
Chris Meredith, chief executive of AMS, said the deal underscored the strategic progress made over his 15 years leading the company and the strength of its product portfolio.
Celeste Mastin, chief executive of H.B. Fuller, described the acquisition as a rare opportunity to advance the evolution of its portfolio, with medical a core strategic growth market.
The AMS directors, advised by Evercore and Investec, intend to unanimously recommend the deal, which is to be effected through a scheme of arrangement.
The acquisition is subject to merger control and foreign investment approvals across several jurisdictions and is expected to complete by the end of 2026.
