(Reuters) – Sterigenics, a sterilization services provider owned by private equity firm GTCR LLC, raised its buyout offer for Nordion Inc to $758 million from $727 million on Monday, after the Canadian medical isotope supplier received a rival bid from an unnamed buyer.
Ottawa-based Nordion said in a statement on Monday that its shareholders will now be entitled to receive $12.25 per share in cash, up 50 cents per share from the earlier offer made on March 28.
Nordion said it last month received an unsolicited written acquisition proposal from a third party at a proposed price of $12.25 per share. The unsolicited proposal contained a comfort letter from financing sources, however it did not have fully committed financing and was subject to other conditions.
Sterigenics has delivered amended and restated debt and equity commitment letters supporting the increased bid, said Nordion, adding its board has unanimously determined the amended bid is superior to the rival proposal.
Nordion shareholders are expected to vote on the bid on May 27, in Ottawa. The deal remains subject to regulatory approvals.
Shares in Nordion closed at $11.58 on Friday on the NYSE.