DEERFIELD, IL – Sterigenics, a leader in outsourced contract sterilization services and a portfolio company of GTCR LLC, announced that it has entered into a definitive agreement to acquire Nordion Inc.
Nordion is a leading provider of medical isotopes and sterilization technologies that are used daily by pharmaceutical and biotechnology companies, medical-device manufacturers, hospitals, clinics and research laboratories.
Upon completion of the transaction, the shareholders of Nordion will receive $11.75 per share in cash. The purchase price represents a premium of approximately 12% to the closing price of US$10.48 per share on the NYSE on March 27, 2014 and a premium of approximately 24% over the 90-day volume weighted average price of US$9.47 per share on the NYSE.
As a standalone business within Sterigenics, Nordion operations will remain in Canada, with headquarters in Ottawa, and the company will continue to operate under the Nordion name.
Through this acquisition, Sterigenics will provide security of supply of Cobalt-60 for customers in Canada, North America and around the world. Additionally, through this business combination, Sterigenics will work to leverage its expertise to secure and expand medical isotope supply.
“Nordion is a recognized global leader in the medical isotopes and sterilization sectors, sharing a similar mission to improve global public health,” said Michael Mulhern, Chief Executive Officer, Sterigenics. “Through this acquisition our primary focus is to ensure a stable, long-term source of Cobalt-60 that will maintain customer confidence in the future availability and growth of gamma sterilization as one of many sterilization options. In the short term, Nordion customers should expect business as usual. Over the long run, we look forward to working with existing and new reactor partners to create a larger and more reliable supply of Cobalt-60 for the future.”
“We believe this transaction is a good strategic fit for Nordion and delivers value to our shareholders,” said Steve West, Chief Executive Officer, Nordion. “Nordion has a proven relationship with Sterigenics, established over 30 years of doing business together. We look forward to exploring further opportunities with Sterigenics to strengthen our Sterilization Technologies and Medical Isotopes businesses.”
The transaction is subject to certain closing conditions, including receipt of all regulatory approvals, and is expected to close in the second half of calendar 2014.