Sterigenics International, a provider of contract sterilization, gamma technologies and medical isotopes, has agreed to be recapitalized by Warburg Pincus in partnership with GTCR which acquired the company in 2011 from Silverfleet Capital. Upon completion of the recapitalization, Warburg Pincus will own the majority of the equity of Sterigenics with GTCR having a minority position. The transaction is expected to close in the second quarter of 2015.
Sterigenics is a provider of outsourced contract sterilization services, gamma technologies and medical isotopes to the medical device, pharmaceutical, food safety, and high-performance materials industries. The company operates out of 43 facilities in 12 countries across the Americas, Europe and Asia and has more than 2,500 customers around the world. The company is headquartered in the Chicago suburb of Oak Brook, IL (www.sterigenucs.com).
In 2014, Sterigenics acquired Nordion, the world’s largest provider of Cobalt-60, an isotope that produces gamma radiation and is a component of the gamma sterilization process. 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.
“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.
Warburg Pincus’ portion of the equity for the recapitalization will come from Warburg Pincus Private Equity XI, LP. Warburg Pincus has more than $35 billion in assets under management and has raised 14 private equity funds which have invested more than $50 billion in over 720 companies in 35 countries. The firm was founded in 1966 and is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mauritius, Mumbai, San Francisco, São Paulo and Shanghai (www.warburgpincus.com).
GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $11 billion in assets under management. Since its inception in 1980, GTCR has invested more than $10 billion in over 200 companies. The firm is based in Chicago (www.gtcr.com).
“Sterigenics represents another excellent example of GTCR successfully executing The Leaders Strategy,” said GTCR Managing Director Dean Mihas. “CEO 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.”
Goldman, Sachs & Co. and Jefferies served as financial advisors to Sterigenics and GTCR. J.P. Morgan Securities provided additional financial advice to GTCR and will provide debt financing for the transaction.
© 2015 PEPD • Private Equity’s Leading News Magazine • 3-24-15
