March 23, 2015 / 4:01 PM / in 4 years

Warburg Pincus to take majority stake in Sterigenics: source

(Reuters) - Private equity firm Warburg Pincus LLC has agreed to acquire a majority stake in Sterigenics International LLC in a deal that values the U.S. provider of contract sterilization services at more than $2 billion, including debt, a source familiar with the transaction said on Monday.

The companies said in a press release that Warburg Pincus would “recapitalize” Sterigenics in partnership with its current owner, buyout firm GTCR LLC, but the announcement did not disclose the terms of the deal.

Warburg Pincus will own a majority stake in Sterigenics, while GTCR will own the rest, the source said, asking not to be identified because the announcement does not disclose the terms of the deal.

Reuters first reported in October that GTCR had hired Goldman Sachs Group Inc (GS.N) and Jefferies LLC to explore a sale of Sterigenics.

The agreement comes less than a year after Sterigenics acquired Nordion, a provider of radioactive isotopes for the global health science market, for $826 million. That deal was largely driven by Sterigenics’ desire to secure the supply of a cobalt isotope that is used in the sterilization of medical devices and tools.

Based in Deerfield, Illinois, Sterigenics operates out of 43 facilities in 12 countries across the Americas, Europe and Asia. GTCR acquired Sterigenics in 2011 for $675 million from another private equity firm, Silverfleet Capital.

JPMorgan Chase & Co (JPM.N) provided additional financial advice to GTCR and will provide debt financing for the transaction, according to the statement on Monday.

Reporting by Greg Roumeliotis in New York; Editing by Christian Plumb

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