BioCentury
ARTICLE | Company News

Nordion, Sterigenics deal

May 12, 2014 7:00 AM UTC

Sterigenics raised its acquisition price for Nordion to $12.25 per share from $11.75 in response to an unsolicited competing offer from an undisclosed third party. The third party submitted a bid of $12.25 on April 25, which was 28 days after Sterigenics' original $11.75 offer. Nordion said the unsolicited offer did not have fully committed financing and was subject to "other conditionality." Sterigenics' offer is fully financed and will be completed using new debt and equity facilities and cash on hand from both parties. The new price values Nordion at $758.4 million based on 61.9 million shares outstanding on March 6. The $12.25 price is a 17% premium to Nordion's close of $10.48 on March 27, before the deal was first announced. Nordion's board has approved the deal, which is subject to approval by Nordion shareholders at a May 27 meeting. The deal is slated to close next half.

Nordion markets medical isotopes and sterilization technologies, and Sterigenics provides outsourced contract sterilization services. Nordion will operate as a standalone business within Sterigenics and remain in Canada. Sterigenics said the acquisition will "provide security of supply of Cobalt-60 for [its] customers in Canada, North America and around the world." Nordion had $232.8 million in revenues for the year ended Oct. 31, 2013. Nordion directed questions to Sterigenics, which could not be reached for details. ...