Sterilization services provider Sterigenics has increased its offer to acquire Canadian radioisotope firm Nordion.
In an attempt to secure necessary Nordion shareholder support for the deal, Sterigenics has now agreed to pay $13 per share, or approximately $805 million, for Nordion. Sterigenics' initial all-cash acquisition proposal of $12.25 per share was supported by 65.2% of Nordion shareholders at the May 30 proxy voting deadline; however, approval by 66.67% of shareholders is required.
The new offer from Sterigenics also led the Nordion board to conclude that a separate acquisition offer received on May 30 from a third party for $12.50 per share does not represent a superior proposal.
The Sterigenics acquisition would be funded using a combination of committed new debt facilities and equity financing, Sterigenics' cash on hand, and a portion of Nordion's cash on hand, according to Nordion.
The board unanimously determined that the amended arrangement is in the best interests of Nordion and said shareholders should vote for the arrangement at its annual and special meeting of shareholders on June 6.
