Introduction to Potential Takeover
Burger King UK’s private equity backer, Bridgepoint, is considering a takeover bid for Advanced Medical Solutions Group, a London-listed surgical products maker. The potential offer could value the target company at around £550m to £600m.
Details of the Potential Offer
Banking sources have indicated that the takeover company is considering an offer valuing AMS at between 270 and 280 pence per share. This would represent a premium of more than 30% to the current share price. As of Friday morning, it was unclear whether Bridgepoint had formally contacted the AMS board regarding its interest.
Background on Advanced Medical Solutions Group
AMS Group produces surgical brands including LiquiBand and Resorba. The company, listed on London’s junior stock exchange AIM, reported interim results in September that showed a 49% rise in pre-tax profits. Its shares have remained largely unchanged over the past year, trading at around 208.5p on Friday morning, giving it a market capitalization of £455m.
Previous Interest in the Company
News of Bridgepoint’s interest comes months after Montagu Private Equity abandoned its interest in bidding for the company. Inflexion, another private equity investor, also examined a possible offer last year. Despite this previous interest, no formal offers were made.
Response from Involved Parties
Bridgepoint and AMS declined to comment on the potential takeover bid. The consideration of an offer by Bridgepoint marks a significant development in the story of AMS, which has seen its share price remain steady despite increases in profitability.
