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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 (NYSE: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 (NYSE:BLK), Neuberger Berman and Goldman Sachs Group Inc (NYSE: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 (NYSE:MCK), Mayo Clinic, Cardinal Health Inc (NYSE:CAH), Cleveland Clinic, Fluor Corp (NYSE:FLR), Exelon, PSEG Power, Westinghouse and Cemex (NYSE:CX).
The company counts an average customer relationship of 10 years in industrial, 15 years in medical and 30 years in nuclear.
Related Link: 10 SPACs Trading Under $11 For Investors To Consider In 2021
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.
(Image by WikiImages from Pixabay)
