Boston, MA 05/05/2014 (wallstreetpr) – Nordion Inc (USA) (NYSE:NDZ) has received an improved bid from Sterigenics, a U.S. company that provides sterilization services. The company is owned by GTCR LLC, a private equity firm.
The improved bid puts the value of Nordion at $758 million, up from $727 million in the previous proposal. Nordion is a $762 million Canadian company that supplies medical isotope.
The adjustment of the bid from Sterigenics did not happen without reason. Sterigenics’ move to increase its bid price for the acquisition of Nordion came as another rival company placed a rival bid for Nordion. The bid from the rival was shared with Sterigenics and looked superior. Therefore, Sterigenics had to adjust its bid price or shut up and allow the rival to go ahead with the acquisition.
However, given the value that Sterigenics attaches to Nordion Inc (USA) (NYSE:NDZ), it was only wise that it improves its offering to secure the deal. The latest deal now means that shareholders of Nordion will receive $12.25 per share in cash. That signals a 50 cents improvement from the previous offer that Sterigenics made in March.
Third-party proposal
The unnamed third-party that stepped forward with a rival proposal had intended to offer $12.25 per share in cash to shareholders of Nordion Inc (USA) (NYSE:NDZ). According to the agreement that Nordion and Sterigenics had earlier committed to when they entered negotiation table, Nordion was required to share with Sterigenics any rival bids that it received. As such, the sharing of the superior rival bid pushed the board of Sterigenics to up its offer.
Nonetheless, Nordion Inc (USA) (NYSE:NDZ) has observed in a statement that although the rival bid from the unnamed potential buyer looked superior to what Sterigenics was previously willing to offer, there were no full commitments to financing.
The latest Sterigenics’ bid comes with a full financing commitment. The company expects to finance the bid by equity issuance and debt facility.
According to Nordion, the unidentified rival bidder had previously made attempts to acquire the company at $10.70 per share. However, that bid did not prevail.
Shares acquisition
Now that Nordion Inc (USA) (NYSE:NDZ) and Sterigenics have agreed on the best bid price, Sterigenics will acquire all the outstanding common stock shares of Nordion.
Shareholders of Nordion are expected to vote on the deal later this month. Also, regulatory approval will be required for the transaction to take effect.
