Private equity firm looks to unload sterilization services company for $1.5B

Med merger mania is leaving no stone unturned, not even sterilization services. On the heels of Steris's ($STE) bid for Britain's Synergy Health in another inversion deal, private equity firm GTCR is looking to unload Sterigenics International, another sterilization company, for $1.5 billion, including debt.

To secure access to a cobalt isotope used in the sterilization of medical devices and tools, Sterigenics took over isotope supplier Nordion for $826 million only two months ago, Reuters points out. With the new addition, Sterigenics has annual pretax earnings of $130 million.

The company says it operates 43 facilities in 11 countries, including China, Thailand, Mexico and Germany. It serves the medical device, pharma, and food services industries.

GTCR added Sterigenics to its portfolio for $675 million from another private equity group.

Although the company faces increased pressure from Synergy Health's takeover, the Affordable Care Act's emphasis on preventing hospital-acquired infections and limiting readmissions means that demand for sterilization services is high.

- read the Reuters article

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