(Reuters) – Sterigenics, a sterilization services provider owned by U.S. private equity firm GTCR LLC, raised its buyout offer for Nordion Inc to US$758 million from US$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 US$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 US$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 US$11.58 on Friday on the NYSE.
GTCR acquired Sterigenics, a Deerfield, Illinois-based provider of sterilization services, in 2011.
(Reporting by Euan Rocha in Toronto and Ashutosh Pandey in Bangalore; Editing by Sriraj Kalluvila and Sofina Mirza-Reid)
(This story has been edited by Kirk Falconer, Editor, peHUB Canada)
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