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23 February 2011

Silverfleet Capital agrees $675M sale of Sterigenics

Sterigenics has invested over $100m in additional capacity and new facilities since its buyout in 2004 to establish a world-leading position

Silverfleet Capital, the European mid-market private equity firm, has agreed to the sale of Sterigenics International, Inc. (“Sterigenics”), the world leader in contract sterilization and ionization services for the medical device industry, to GTCR, a leading U.S. private equity firm. The transaction, which is subject to anti-trust clearance, is expected to close by the second quarter of 2011.

Silverfleet Capital and PPM America Capital Partners, together with the management team of Sterigenics, acquired the company in 2004 for $311.5 million. The investment strategy was to expand the company’s international presence, particularly in China. Since then, the company has built two new facilities in Shanghai, China, a new facility in Wiesbaden, Germany and expanded eight other facilities at a cost in excess of $100 million. By the end of 2010 earnings had increased by 75 per cent. A significant part of this increase is attributable to the investment in additional capacity made by the company.

Neil MacDougall, the managing partner of Silverfleet Capital and a director of Sterigenics, said: “Sterigenics has been a very successful investment for Silverfleet Capital. The business has grown substantially during the six year period that we have been investors. This growth has been achieved by investing in new service centres in China and Germany as well as adding processing capacity to existing locations in the United States, France, Belgium and the UK.”

David Meyer, CEO of Sterigenics, commented: “We have enjoyed working closely with Silverfleet Capital over the last six years and would like to thank them for their support in executing our international growth strategy. Silverfleet Capital fully understood both the opportunities and risks in our business and has, therefore, provided us with the assistance we needed, when we needed it.”

Guy Petrelli, Silverfleet Capital’s partner based in Chicago and a director of Sterigenics, added: “It has been a privilege to be involved with Sterigenics. We wish Dave Meyer and his team every success in the future as they continue their strategy to build their global footprint.”

Sterigenics, headquartered in Oak Brook, Illinois, operates 38 service centres worldwide employing over 1,300 people and offers a complete range of sterilisation technologies including ethylene oxide, gamma ray, electron beam and x-ray processing. In addition to sterilising medical devices and other medical products, Sterigenics is also active in the fields of food safety and the treatment of high performance and specialty materials such as semiconductors and polymers.

J.P. Morgan Securities LLC acted as exclusive financial advisor and Latham & Watkins LLP acted as legal counsel to the selling stockholders and the Company.