Sterigenics invests $15m in Arkansas gamma sterilisation site

By Dan Stanton contact

- Last updated on GMT

Sterigenics invests $15m in Arkansas gamma sterilisation site

Related tags: Private equity, Bacteria

Sterigenics will triple gamma sterilisation capacity at a site in Arkansas on the back of strong demand from pharmaceutical and medical device customers.

The site in West Memphis, Arkansas, currently has 2.5 million cubic feet of gamma sterilization capacity but a $15m (€13.4m) expansion will – upon completion in 2017 - triple this and add around 20 new jobs.

“Sterigenics’ strong growth with both pharmaceutical and medical device customers is driving this expansion,”​ John Vita, a spokesman for the firm, told Outsourcing-Pharma.com.

“Terminal sterilization is the preferred methodology for the pharma sector, and in West Memphis we have a unique cold chain management programme that allows us to process various pharmaceutical products requiring tight temperature control.”

He added the firm is also seeing a growth in pharma demand for its SteriPro Labs services which offer microbiological and analytical testing and consultancy.

Illinois-headquartered Sterigenics International received a boost earlier this year through an investment from private equity firm Warburg Pincus​. The firm acquired an undisclosed stake from owners Sterigenics, valuing the firm at a rumoured $2bn plus.

The investment also comes after the firm expanded through a series of acquisitions last year. In November, the company bought Italian gamma-ray sterilisation firm Gammarad for an undisclosed amount​, following on from the takeover of Florida-based Food Technology Service and Canada’s Nordion.

Sterigenics has 15 gamma irradiation contract service facilities in North America and two in Europe.

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