The deal is but the latest example of how the medtech merger frenzy extends to the supplier base.
Contract sterilization provider Sterigenics International LLC recently announced that it will acquire Nelson Laboratories, which touts itself as the largest U.S. provider of life-cycle microbiology testing services for the medical devices, pharmaceutical and tissue industries.
Financial terms of the deal were not disclosed.
Deerfield, IL-based Sterigenics is a portfolio company of Warburg Pincus and GTCR. It plans to keep Nelson Labs' operations in Salt Lake City, combining them with Sterigenics' existing SteriPro Labs microbiological and analytical testing and consultancy.
Nelson Labs has 570 employees, including more than 300 scientists and 60 registered and specialist microbiologists. It has 85 labs running out of five corporate buildings in Salt Lake City, with more than 3000 client companies in 57 countries. Nelson provides more than 400 microbiological and analytical tests.
"This is a significant strategic acquisition to help build out Sterigenics' lab testing and service capabilities on a global scale, enabling us to better serve our multinational customers," said Michael Mulhern, CEO of Sterigenics International, said in a news release.
The deal is but the latest example of how the medical device industry merger frenzy has extended to its supplier base. Other notable deals at the supplier level include Greatbatch's $1.73 billion acquisition of Lake Region Medical last year.
Visit Nelson Labs at Booth #433 at BIOMEDevice Boston, April 13-14, 2016.