Sterigenics buys amid speculation PE backer is looking to offload

By Gareth Macdonald contact

- Last updated on GMT

Competition heating up in sterilisation services sector
Competition heating up in sterilisation services sector

Related tags: Private equity, Goldman sachs

Sterigenics International has bought Italian gamma-ray sterilisation firm Gammarad in a deal that comes amid rumors that private equity owner GTCR is looking to offload the Illinois-based contractor.

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 matte​r” 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​.”

Related news

Related products

show more

Has EDC Kept Up With Changes In Clinical Trials?

Has EDC Kept Up With Changes In Clinical Trials?

Oracle Health Sciences | 14-Dec-2020 | Technical / White Paper

In just a few decades, clinical trials have changed dramatically. Twenty years ago, most of the data used in clinical research was entered on paper, but...

Why Blister Packaging: Things to Consider

Why Blister Packaging: Things to Consider

Catalent Pharma Solutions | 03-Dec-2020 | Insight Guide

The decision to use blister packaging for either clinical trials or commercial drug manufacturing comes with a host of factors to consider. Pharmaceutical...

Liver Disease Capabilities

Liver Disease Capabilities

Q² Solutions | 01-Oct-2020 | Clinical Study

We integrate therapeutic insights, state-of-the-art technologies, best-in-class methods and quality systems to optimize NAFLD & NASH study design,...

Related suppliers

Follow us

Products

View more

Webinars