Sotera Health IPO: What Investors Need To Know

End to end sterilization and lab testing company Sotera Health Company SHC is hitting the public markets on Friday.

The Offering: Sotera Health plans on selling 46.6 million shares at a price point of $20 to $23. The company would have a market cap of over $6 billion based on a pricing at the mid-point of $21.50.

After the IPO, Warburg Pincus and GTCR will own 41.9% and 27.9%, respectively, of the company.

About Sotera: Sotera provides end to end sterilization, analytical lab testing and advisory services. Brands owned by Sotera Health Company include Sterigenics, Nordion and Nelson Labs.

Customers for Sotera include 40 of the top 50 medical device companies and 8 of the top 10 pharmaceutical companies based on revenue. Nelson Labs has over 3,800 customers.

Sterilization services include PPE, gamma irradiation and EO processing.

Sotera has 63 facilities located in 13 countries around the world.

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Financials: Sotera Health has posted revenue growth every year since 2005.

Revenue for 2019 was $778.3 million and the company had an adjusted net income of $100.4 million in 2019.

Revenue for the first nine months of 2020 was $601.3 million. Adjusted net income was $77.1 million for the first nine months of 2020.

Growth Plans: The company plans on growing by driving organic growth, deepening customer relationships, expanding the company footprint to meet the needs of customers and investing in technical and regulatory capabilities.

Sotera will also pursue value-creating strategic acquisitions after going public.