Janet,
Thought you would have posted this, it is great news, IMHO.
FREMONT, Calif., Dec. 29 /PRNewswire/ -- SteriGenics International, Inc.
(NASDAQ:STER) announced today that it has entered into a definitive agreement
to acquire the Nicolet Electron Services ("NES") division of ThermoSpectra
Corporation (AMEX:THS). NES is a leading provider of contract electron beam
radiation services based in San Diego, California.
The purchase price is approximately $7 million, consisting of $5 million
in cash and common stock valued at $2 million. Subject to customary
conditions, the transaction is expected to close within several days.
NES has achieved strong growth in sales and profitability by providing
quality electron beam radiation services for applications including the
sterilization of health care products and the radiation processing of
semiconductors and other products. The acquisition is expected to be
immediately accretive to SteriGenics' earnings per share.
James F. Clouser, SteriGenics' President and CEO, stated, "The acquisition
of NES is an important step in our strategic acquisition program. We expect
this acquisition to strengthen our leading position in the contract radiation
services market in California and throughout the nation. The acquisition of
NES accelerates our entry into the electron beam radiation services business.
In addition to the range of products currently processed by NES, SteriGenics
believes that providing e-beam services enhances the range of potential
solutions SteriGenics can offer in addressing the important need for making
our nation's food supply safe by using ionizing pasteurization."
Lewis A. Parks, Ph.D., currently Manager of NES, will join SteriGenics
upon completion of the transaction as Director of Electron Beam Services.
Dr. Parks stated, "I am pleased to join the team at SteriGenics, and I am
confident that the resources and focus which SteriGenics provides will prove
beneficial both for our customers and our employees."
SteriGenics International, Inc., headquartered in Fremont, California, is
a provider of high quality contract sterilization services with more than
18 years of experience in the operation, design and development of gamma
irradiation facilities and equipment. The company operates 12 gamma
irradiation facilities in six states serving more than 850 customers
predominantly in the health care products market. SteriGenics has recently
expanded into various non-medical sterilization and processing markets
including spices, cosmetics and fresh foods.
ThermoSpectra Corporation develops, manufactures, and markets precision
imaging, inspection, measurement instrumentation, and temperature-control
systems. ThermoSpectra is a subsidiary of Thermo Instrument Systems Inc.
(AMEX:THI), a Thermo Electron company (NYSE:TMO).
This press release contains forward-looking statements regarding the
company's potential markets and future operating results. Because such
statements deal with future events, they are subject to various risks and
uncertainties and actual results may differ materially from the company's
current expectations. Factors that could cause or contribute to such
differences include, but are not limited to, risks related to managing growth
and potential acquisitions, unpredictability of future operating results,
likely fluctuations in quarterly operating results, the uncertainty of
expansion in non-medical markets, competition, risks related to government
regulation and other risks set forth in the company's quarterly report on
Form 10-Q as filed with the Securities and Exchange Commission on
November 13, 1997. |
