Warburg Pincus and GTCR will recapitalize Sterigenics International, a provider of contract sterilization, gamma technologies and medical isotopes. No financial terms were disclosed. The transaction is expected to be completed in the second quarter of this year. Goldman, Sachs & Co. and Jefferies LLC were financial advisors to Sterigenics and GTCR while J.P. Morgan Securities LLC provided additional financial advice to GTCR. Also, JPMorgan will provide debt financing for the recap. Sterigenics is owned by GTCR.
DEERFIELD, IL AND NEW YORK, NY – March 23, 2015 – Sterigenics International (“Sterigenics” or the “Company”), the leading global provider of contract sterilization, gamma technologies and medical isotopes, today announced that an affiliate of Warburg Pincus, a global private equity firm focused on growth investing, will recapitalize Sterigenics in partnership with private equity firm GTCR. Terms of the transaction were not 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,” said 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 sterilization process, creating the only vertically integrated sterilization 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 sterilization company, which now serves as the company’s second gamma sterilization 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,” continued 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, commented, “Michael, the Sterigenics management team and GTCR have established a world-class sterilization 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 sterilization services.”
“This represents another excellent example of GTCR successfully executing The Leaders Strategy™,” added 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 recapitalization will come from Warburg Pincus Private Equity XI, L.P.
Goldman, Sachs & Co. and Jefferies LLC served as financial advisors, and Kirkland & Ellis LLP and Gowling Lafleur Henderson LLP provided legal counsel to Sterigenics and GTCR. J.P. Morgan Securities LLC provided additional financial advice to GTCR and will provide debt financing for the transaction. Cleary Gottlieb Steen & Hamilton LLP served as legal advisor to Warburg Pincus.
About Sterigenics International LLC
Sterigenics International LLC is a global leader in outsourced contract sterilization services, gamma technologies and medical isotopes, and the only vertically integrated sterilization company in the world. Operating out of 43 facilities in 12 countries across the Americas, Europe and Asia, Sterigenics provides contract sterilization and ionization services for the medical device, pharmaceutical, food safety, and high-performance materials industries. Through SteriPro® Labs service, Sterigenics offers microbiological and analytical testing and consultancy to assist customers in developing and maintaining sterilization solutions in medical devices, tissue/implantable products, and pharmaceuticals and biologics fields. Subsidiary Nordion positions Sterigenics as 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 International LLC serves more than 2,500 customers around the world.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $35 billion in assets under management. The firm’s active portfolio of more than 120 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value.
Founded in 1966, Warburg Pincus has raised 14 private equity funds, which have invested more than $50 billion in over 720 companies in more than 35 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mauritius, Mumbai, San Francisco, São Paulo and Shanghai. For more information, please visit www.warburgpincus.com.
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare and Information Services & Technology industries. The Chicago-based firm pioneered The Leaders Strategy™ – finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $10 billion in over 200 companies. For more information, please visit www.gtcr.com.