H.B. Fuller Investors Weigh Big Advanced Medical Cash Offer, Stock Tanks

H.B. Fuller Company (NYSE:FUL) shares traded lower in Thursday’s premarket session as investors weighed its recommended cash offer for Advanced Medical Solutions Group plc and second-quarter results that beat estimates and raised guidance.

AMS Acquisition Terms

H.B. Fuller has offered 2.85 pounds per share in cash for Advanced Medical Solutions, representing a total enterprise value of 715 million pounds (approximately $943.29 million).

Advanced Medical Solutions is a differentiated medical products company with surgical adhesive technologies. It has an innovation-led platform, global commercial footprint, R&D capabilities, and regulatory expertise.

The fully financed transaction is expected to close by year-end, subject to approvals and customary closing conditions.

Medical Expansion And Synergy Targets

H.B. Fuller stated that the acquisition will expand its presence in medical adhesives and related healthcare products, such as tissue-bonding adhesives, tapes, dressings, and formulated biosurgicals.

The company expects AMS to contribute approximately $300 million in annual revenue and expand its total addressable market by $15 billion to $95 billion.

It also anticipates about $55 million, or 41 million pounds, in annual run-rate revenue and cost synergies by 2031.

H.B. Fuller stated that the deal supports its long-term targets of 5% annual constant currency revenue growth and EBITDA margins above 20%.

The company also expects to reduce leverage to its target range of 2.5 to 3 times within two years after closing.

"This transaction is a rare opportunity to advance the evolution of our portfolio," H.B. Fuller President and CEO Celeste Mastin said.

Q2 Results Beat Estimates

Following strong second-quarter fiscal 2026 results, H.B. Fuller raised the midpoint of its full-year adjusted EBITDA and adjusted EPS guidance.

Net revenue increased 5.8% year-over-year to $950.3 million, surpassing the $924.8 million estimate. Organic revenue grew 2.6%, with pricing gains offsetting a slight decline in volume.

Net income reached $68 million. Adjusted EBITDA rose 9% to $181 million, and adjusted diluted EPS increased 19% to $1.41, exceeding the $1.40 estimate.

Adjusted gross margin improved by 200 basis points to 34.2%, primarily due to effective pricing and restructuring savings.

Cash Flow, Debt, and Guidance

Operating cash flow reached a record $121 million for the second quarter, up approximately 10% year-over-year. The company also repurchased 750,000 shares during the quarter.

H.B. Fuller ended the quarter with cash and cash equivalents of $114.10 million. Net debt was $1.958 billion, down $58 million year-on-year, while net debt-to-adjusted EBITDA improved to 3.1x from 3.4x.

For fiscal 2026, the company raised its adjusted EPS guidance to $4.60–$4.90 from $4.55–$4.90, compared to the $4.84 estimate.

FUL Stock Price Activity: H.B. Fuller shares were down 14.09% at $55.50 during premarket trading on Thursday, according to Benzinga Pro data.

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