An affiliate of private equity firm Warburg Pincus is to recapitalise Sterigenics, provider of contract sterilization, gamma technologies and medical isotopes, in partnership with private equity firm GTCR.
Terms of the transaction have not been disclosed. GTCR purchased Sterigenics in 2011.
“With this new partnership between Warburg Pincus and GTCR, Sterigenics is extraordinarily well positioned to accelerate growth, invest additional capital to serve our customers and expand our global footprint,” says Michael Mulhern, CEO of Sterigenics International.
Sterigenics’ growth over the past several years has reinforced its global market-leading position in the contract sterilization services industry. In 2014, Sterigenics acquired Nordion, the world’s largest provider of Cobalt-60, an isotope that produces gamma radiation and is a critical component of the gamma sterilisation process, creating the only vertically integrated sterilisation services company in the world. The acquisition of Nordion expanded the Sterigenics product portfolio, service offering, and global footprint to better serve customers worldwide. Additional acquisitions in 2014 included the Florida-based gamma irradiation operator, FTSI, as well as Gammarad, Italy’s leading gamma irradiation sterilisation company, which now serves as the company’s second gamma sterilisation facility in Western Europe.
In February, Nordion reached landmark partnership agreements with General Atomics and the University of Missouri Research Reactor Center (MURR) to establish a new, long-term supply of medical isotopes that will serve millions of patients around the world. Achieving a long-term supply of medical isotopes for global customers has been a strategic priority of Sterigenics since its acquisition of Nordion.
“The future for Sterigenics International and its employees has never been brighter with the commitment of Warburg Pincus and GTCR,” says Mulhern. “We are excited to continue our mission to improve global public health, ultimately benefiting millions of people around the world who count on our services.”
Jim Neary, Managing Director and Member of the Executive Management Group, Warburg Pincus, says: “Michael, the Sterigenics management team and GTCR have established a world-class sterilisation company that serves a large and growing market. Sterigenics fills a mission-critical need for its customers and is well positioned to benefit from the increasing demand for outsourced sterilisation services.”
“This represents another excellent example of GTCR successfully executing The Leaders Strategy,” adds GTCR Managing Director Dean Mihas. “Michael Mulhern and the entire Sterigenics management team have built a tremendous platform that enjoys market-leading positions in its segments, exceptional customer service and attractive growth prospects. We look forward to partnering with Warburg Pincus to support the company’s continued growth going forward.”
The transaction is expected to close in the second quarter of 2015. Warburg Pincus’ portion of the equity for the recapitalisation will come from Warburg Pincus Private Equity XI.
