GTCR and Warburg Pincus to Recapitalize Sterigenics International
March 23, 2015
GTCR, a leading private equity firm, announced today that it will recapitalize Sterigenics International (“Sterigenics” or “the company”) with an affiliate of Warburg Pincus, a global private equity firm focused on growth investing. Terms of the transaction were not disclosed.
Sterigenics is the leading global provider of mission-critical sterilization services to the medical device, pharmaceutical, food safety and high-performance materials industries. In 2014, Sterigenics acquired Nordion, a supplier of medical isotopes and sterilization technologies, creating the only vertically integrated sterilization provider in the world. The company operates more than 40 sterilization facilities across the Americas, Europe and Asia.
In executing its Leaders Strategy™, GTCR partnered with veteran executives Michael Mulhern and Phil Macnabb to acquire Sterigenics in 2011. Since that transaction, the business has experienced a significant transformation. The management team has grown and improved the platform with operational enhancements, investments in additional capacity and the execution of highly strategic acquisitions, including the acquisition of Nordion.
“This represents another excellent example of GTCR successfully executing The Leaders Strategy™,” said GTCR managing director Dean Mihas. “Michael, Phil and the entire Sterigenics 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.”
“On behalf of all the employees at Sterigenics, I’d like to thank GTCR for its commitment and support of our tremendous growth over the past four years. They have been outstanding partners, and we are excited to have the support of GTCR and Warburg Pincus as we build upon our leading position and further enhance our platform for customers worldwide,” said Michael Mulhern, CEO of Sterigenics.
“This is our third successful partnership with Michael Mulhern over the past decade,” added GTCR managing director Sean Cunningham. “His leadership and track record of success are exceptional, and we’re thrilled to have the opportunity to partner again with Michael, Phil Macnabb and the entire Sterigenics team.”
The transaction is expected to close in the second quarter of 2015.
Goldman, Sachs & Co. and Jefferies LLC served as financial advisors and Kirkland & Ellis LLP and Gowling Lafleur Henderson LLP provided legal counsel to Sterigenics and GTCR. J.P. Morgan Securities LLC provided additional financial advice to GTCR and will provide debt financing for the transaction. Cleary Gottlieb Steen & Hamilton LLP served as legal advisor to Warburg Pincus.
About Sterigenics International LLC
Sterigenics International LLC is a global leader in outsourced contract sterilization services, gamma technologies and medical isotopes, and the only vertically integrated sterilization company in the world. Operating out of 43 facilities in 12 countries across the Americas, Europe and Asia, Sterigenics provides contract sterilization and ionization services for the medical device, pharmaceutical, food safety and high-performance/specialty materials industries. Through SteriPro® Labs service, Sterigenics offers microbiological and analytical testing and consultancy to assist customers in developing and maintaining sterilization solutions in medical devices, tissue/implantable products, and pharmaceuticals and biologics fields. Subsidiary Nordion Inc. positions Sterigenics as the world’s largest provider of Cobalt-60 used in the gamma sterilization process as well as medical isotopes used in the diagnosis and treatment of various diseases and cancers. Sterigenics International LLC serves more than 2,500 customers around the world.
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare and Information Services & Technology industries. The Chicago-based firm pioneered The Leaders Strategy™— finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $10 billion in over 200 companies. For more information, please visit www.gtcr.com.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $35 billion in assets under management. The firm’s active portfolio of more than 120 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value.
Founded in 1966, Warburg Pincus has raised 14 private equity funds, which have invested more than $50 billion in over 720 companies in more than 35 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mauritius, Mumbai, San Francisco, São Paulo and Shanghai. For more information, please visit www.warburgpincus.com.