GTCR LLC-backed Sterigenics is buying Nordion Inc. (TSX: NDN, NYSE: NDZ), which provides services to the health science market for $727 million.

Nordion, headquartered in Ottawa, Ontario, provides products and services used to prevent, diagnose and treat diseases, including sterilization technology.

Deerfield, Ill.-based Sterigenics provides sterilization services. The deal will give the company a steady source of Cobalt- 60, which is used to sterilize medical equipment. After the transaction closes, Nordion will operate as a standalone company within Sterigenics.

The purchase works out to $11.75 per share in cash. Before the deal was announced, on March 27, Nordion's shares closed at $10.48. Sterigenics will fund the purchase with a combination of new debt and equity financing, plus cash on hand.

Sterigenics was purchased by Chicago private equity firm GTCR in March 2011. In December, the company announced a $20.5 million deal for Food Technology Service Inc., which provides sanitation services to the medical device, packaging and food industries. 

GTCR was named Mergers & Acquisitions M&A Mid-Market Private Equity Firm of the Year for 2013. In March, the firm agreed to invest up to $300 million to create Maravai Life Sciences Inc., a company that will focus on the diagnostics and life sciences industries. In February, GTCR bought Callcredit, a company that provides consumer credit data services. 

Skadden Arps Slate Meagher & Flom LLP provided legal advice to Noridion on the deal, while Kirkland & Ellis LLP advised Sterigenics. 

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