BWX Technologies, Inc. (NYSE: BWXT) has entered into a definitive agreement to acquire the Nordion medical isotope business from Sotera Health LLC. Financial terms were not disclosed.
Subject to Canadian and U.S. regulatory reviews and approvals, the acquisition is expected to close by the end of 2018.
BWX Technologies will acquire all of Nordion’s medical isotope assets, including the radiochemical operation and contract manufacturing services in Kanata, Ontario and the medical isotope operation in Vancouver, British Columbia. Approximately 150 employees will transition to BWXT at the close of the sale.
Sotera Health LLC, formerly Sterigenics International LLC, acquired then TXS/NYSE listed Nordion Inc. for US $826 million in August 2014.
Sotera Health is owned by Warburg Pincus and GTCR.
photo credit: Noridon
News Release
BWXT Announces Strategic Acquisition of Sotera Health’s Nordion Medical Isotope Business
BWX Technologies, Inc. (NYSE:BWXT) (“BWXT” or the “Company”) announced today that it has signed a definitive agreement to acquire Sotera Health’s Nordion medical isotope business.
The acquisition accelerates and de-risks BWXT’s entry into the medical radioisotope market by adding licensed infrastructure, approximately 150 highly trained and experienced personnel, and two production centers to BWXT.
“Today’s announcement demonstrates our ability to leverage BWXT’s traditional and unique competencies in radiochemical processing to expand into an exciting market with high growth potential,” said Rex D. Geveden, BWXT’s President and Chief Executive Officer. “BWXT has previously announced plans to enter the medical radioisotope market with a new, innovative technology, and this acquisition is a foundational step in that direction. We look forward to completing the acquisition process and welcoming the employees of Nordion to the BWXT team.”
Subject to required Canadian and U.S. regulatory reviews and approvals, the acquisition of Sotera Health’s Nordion medical radioisotope business is expected to close by the end of 2018.
Nordion’s medical radioisotopes business is a leading global manufacturer and supplier of critical medical isotopes and radiopharmaceuticals for research, diagnostic and therapeutic uses. Its customers include radiopharmaceutical companies, hospitals and radiopharmacies. Its primary operations are located in Kanata, Ontario and Vancouver, British Columbia.
Nordion’s medical isotope and contract manufacturing operations included in this acquisition will continue to operate to the high level of service their customers have come to expect with no disruption to current operations.
In conjunction with the closing of the Nordion medical isotope acquisition, BWXT expects to reduce capital expenditures by approximately $100 million, before acquisition costs. The Company now expects capital expenditures of approximately $150 million in 2018.
About BWXT
Headquartered in Lynchburg, Va., BWX Technologies, Inc. (NYSE:BWXT) is a leading supplier of nuclear components and fuel to the U.S. government; provides technical and management services to support the U.S. government in the operation of complex facilities and environmental remediation activities; and supplies precision manufactured components, services and fuel for the commercial nuclear power industry. With approximately 6,100 employees, BWXT has nine major operating sites in the U.S. and Canada. In addition, BWXT joint ventures provide management and operations at more than a dozen U.S. Department of Energy and NASA facilities. Follow us on Twitter @BWXTech and learn more at www.bwxt.com.
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