Sterigenics buys amid speculation PE backer is looking to offload
Sterigenics announced its takeover of Bologna’s Gammarad last weekend, explaining that the deal – financial terms of which were not disclosed – will boost gamma irradiation offering in the pharmaceutical, biomedical, cosmetics and food sectors.
The acquisition is the third Sterigenics has made this year behind its takeover of Florida-based Food Technology Service, which it bought in March, and Canada’s Nordion which was purchased in August.
Sterigenics has 15 gamma irradiation contract services facilities in North America but – before the Gammarad deal – only operated one in Europe, which is at a site in Fleurus in Belgium.
Sale speculation
At present, Sterigenics is owned by private-equity organisation GTCR, which bought the contract sterilisation services firm from Silverfleet Capital for $675m in 2011.
Last week, Reuters reported that it had been told by unnamed “people familiar with the matter” that GTCR has called in Goldman Sachs and Jefferies have been called in to help it sell Sterigenics for $1.8bn.
The rumors follow just a few days after rival Steris acquired Synergy Health, a health focused UK-based provider of contract sterilisation services.
At the time, US rating agency Moody’s suggested that Sterigenics “will face increasing competitive pressure over the medium to long term” as a result of the Steris acquisition.
Sterigenics did not make any mention of the sale rumors when announcing the Gammarad deal.
Instead CEO Michael Mulhern said: “Sterigenics has committed more than $32m in growth capital to expand existing facilities across the Americas and Europe.”
