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Observational Notes on Nordion Inc. (NDZ)

Journal Entry: 12 Aug 2013
Nordion Inc. Capitalization Rate
in millions except shares outstanding
Closing price: $7.59
Shares Outstanding: 61,909,000
market value of equity: $469.89
Debt, fair value: $42.36
Cash & Equivalents: $81.53
Enterprise Value: $430.72
normalized EBITDA less CapEx: $17.23
Pre-tax Cap Rate: 4.00%

  • Agreement signed on May 23, 2013 to divest the Targeted Therapies business to BTG plc (BTG) for a cash purchase price of $200 million
  • From Mr.Steve West, Chief Executive Officer, Nordion Inc., "...made progress on our strategic review, reaching an agreement to divest the Targeted Therapies business to BTG, which we believe unlocks value for our shareholders and leaves us with a focused specialty isotopes business going forward."
  • Company generated an increase of $6.1 million, or 12%, over revenue of $50.0 million for the same period in fiscal 2012
  • Specialty Isotopes: Sterilization Technologies - $20.2 million revenue up 36% compared to Q2 2012
  • Cash & Liquidity position bolstered from sale; $51.7 million of deferred tax assets and $185 million additional cash upon close of sale unaccounted in above Pre-tax Cap Rate











    •  I have no positions in the above company mentioned, but may initiate a long position over the next 72 hours.
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    1 comment:

    1. OTuesday, August 20, 2013 12:22:00 PM

      Nordion and Atomic Energy of Canada Limited resolved outstanding claims to MAPLE facilities. There is an amended supply and waste management agreement as an additional result.

      Steve West, Chief Executive Officer, Nordion Inc stated, "This resolution provides greater clarity for Nordion and removes the uncertainty and liability around these matters..."

      SHARES UP 7% for a nice annualized return since listed!

      -settlement agreement, Nordion will receive CAD$15 million in cash from AECL, and AECL has released its claim against Nordion of approximately CAD$47 million for arbitration costs

      http://www.sec.gov/Archives/edgar/data/1057698/000105769813000035/nordion_press20aug2013.htm

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