Mirion Technologies, a leader in the radiation hardware, software and alignment for hospitals, urgent care clinics, dental offices, veterinary offices and nuclear power plants, announced a SPAC merger Thursday.
The SPAC Deal: Mirion Technologies is going public with GS Acquisition Holdings Corp II GSAH. The company is valued at $2.5 billion in the SPAC deal.
A PIPE of $900 million includes investments from Janus Henderson Investors, Fidelity Management, BlackRock Inc BLK, Neuberger Berman and Goldman Sachs Group Inc GS.
Public GSAH shareholders will own 36.8% of the company after the merger.
About Mirion: In business for more than 50 years, Mirion is the global leader in ionizing radiation detection and measurement technologies, holding a market share leading position in 14 of 17 operating categories.
The company said there are high barriers to entry and counts its strong history of relationships with customers as a key advantage.
Mirion’s main business areas are nuclear power products and services, labs and research, civil and defense, and nuclear medicine.
Key customers include McKesson Corporation MCK, Mayo Clinic, Cardinal Health Inc CAH, Cleveland Clinic, Fluor Corp FLR, Exelon, PSEG Power, Westinghouse and Cemex CX.
The company counts an average customer relationship of 10 years in industrial, 15 years in medical and 30 years in nuclear.
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Growth Ahead: Mirion is targeting low- to mid-single-digit growth across several markets with a total addressable market of $4.3 billion as listed in its presentation. The company projects growth of 5% to 7% for medical, 3% to 5% for labs, 3% to 5% for diversified industrial and 2% to 4% for nuclear.
“This transaction enables us to accelerate our growth, expand upon our market-leading product innovation strategy and execute on the multiple levers of value creation we have identified,” Mirion CEO Thomas Logan said.
Mirion has high recurring revenue with 70% of its revenue coming from replacement, maintenance and recurring items.
The company has a strong history of mergers and acquisitions and plans to grow in current operating segments through acquisitions and margin expansion.
Financials: Mirion had revenue of $651 million in fiscal 2020 and has EBITDA margins of around 25%.
The company’s revenue is split 39% nuclear, 44% medical and labs and 17% diversified and industrials. Margins were 29% for industrial technology and 31% for medical.
North America makes up 45% of the company’s revenue followed by Europe at 35%, China at 8%, other Asia at 9% and the rest of the world at 3%.
The company is forecasting revenue growth of 5% annually from 2021 to 2023 with revenue projections of $689 million for fiscal 2021 and $723 million for fiscal 2022.
GSAH Price Action: Shares of GSAH are up 1.40% to $10.14 on Thursday morning at publication.
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