The $727 million valuation represents a 12% premium on Nordion’s closing price March 27, the day before the deal was announced.
"This transaction delivers value to our shareholders and is a good strategic fit for Nordion," Nordion CEO Steve West said in prepared remarks. "We believe this partnership is beneficial to Nordion’s employees and our customers, as Nordion and Sterigenics combine their global expertise, industry knowledge and the same focus on high quality standards and values. This transaction also marks the successful completion of Nordion’s strategic review."
Sterigenics, which is owned by PE player GTCR LLC, said Nordion would continue to operate under its own banner as a stand-alone company.
"Nordion is a recognized global leader in the medical isotopes and sterilization sectors, sharing a similar mission to improve global public health," Sterigenics CEO Michael Mulhern said in a statement. "Through this acquisition, our 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."