Sotera Health LLC has agreed to sell the medical isotopes unit of its Nordion business to BWX Technologies Inc (BWXT), a U.S. supplier of nuclear components and fuel. No financial terms were disclosed for the deal, which includes Nordion’s radiochemical operation and contract manufacturing services in Ottawa and the medical isotope operation in Vancouver. As a result, Nordion, bought in 2014 by Sotera for US$826 million, will focus on growing its gamma technologies division. Sotera, a Broadview Heights, Ohio-based contract sterilization company, is owned by U.S. private equity firms Warburg Pincus and GTCR.
Sotera Health LLC announces intent to sell Nordion’s Medical Isotopes segment to BWXT
Sotera Health committed to Safeguarding Global Health™ with Nordion’s increased focus on global gamma technologies business
BROADVIEW HEIGHTS, Ohio, April 17, 2018 /CNW/ — Sotera Health LLC, the world’s leading, fully integrated protector of global health, today announced that it has entered into a definitive asset purchase agreement to sell the Medical Isotopes segment of its Nordion business to a subsidiary of BWX Technologies, Inc. (BWXT). This transaction will create a platform that will accelerate growth for both companies.
“The world’s need for gamma technology has expanded dramatically as the demand for sterilization of medical and non-medical applications has accelerated in response to increasing global regulatory demands and growing healthcare needs,” said Michael Petras, Chief Executive Officer of Sotera Health. “The sale will enable BWXT to enter the medical isotope field with highly skilled employees and specialized facilities that are recognized as the best in the business. As the world’s only fully integrated provider of mission-critical services to the healthcare industry, Sotera Health is excited about the additional value Nordion will bring to our gamma customers, and our other best-in-class businesses, Sterigenics and Nelson Labs.”
Through the agreement, BWXT will acquire essentially all of Nordion’s medical isotope assets, including the radiochemical operation and contract manufacturing services in Kanata, and the medical isotope operation in Vancouver, British Columbia.
Both companies will continue to operate from Nordion’s state-of-the-art licensed facility in Kanata, Ontario. Approximately 150 employees will transition to BWXT at the close of the sale.
“Nordion will continue to focus on accelerating growth in gamma technologies, including industrial and medical cobalt-60 which fits perfectly with Sotera Health’s broader mission of Safeguarding Global Health™,” said Kevin Brooks, President of Nordion.
About Sotera Health:
Sotera Health LLC, along with its business entities, is the world’s leading, fully integrated protector of global health. With over 500 years of combined scientific expertise, the company ensures the safety of healthcare by providing mission-critical services to the medical device, pharmaceutical, tissue and food industries. Sotera Health operates more than 61 facilities in 13 countries. The company has over 2,600 employees globally and touches the lives of more than 180 million people around the world each year. Sotera Health serves more than 5,000 customers worldwide including 75 of the top 100 medical device manufacturers.
Sotera Health goes to market through its three best-in-class companies – Nelson Labs™, Nordion® and Sterigenics® – with the mission of ensuring the safety of healthcare each and every day. Nelson Labs offers microbiological and analytical testing and consultancy to assist customers in developing and maintaining sterilization solutions in medical devices, tissue/implantable products, and the pharmaceutical and biologics fields. Nordion is the world’s largest provider of Cobalt-60 used in the gamma sterilization process as well as medical isotopes used in the diagnosis and treatment of various diseases and cancers. Sterigenics provides comprehensive contract sterilization and ionization solutions for the medical device, pharmaceutical, food safety and high-performance materials industries.
Sotera Health LLC is owned by private equity firms Warburg Pincus and GTCR. Learn more about Sotera Health at soterahealth.com, about Nelson Labs at nelsonlabs.com, about Nordion at nordion.com and about Sterigenics at sterigenics.com.
Paul Monlezun, Public Affairs Advisors
Kristin A. Gibbs, Chief Marketing Officer, Sotera Health LLC
Photo courtesy of Nordion (Canada) Inc