Mirion signs agreement to acquire Paragon

Atlanta-based radiation equipment provider Mirion announced that it has entered into a definitive agreement to acquire Paragon Energy Solutions, a leading provider of engineering technology for the nuclear power industry. Mirion purchased Paragon, based in Fort Worth, Texas, from Windjammer Capital Investors for approximately $585 million.

Paragon employs more than 100 skilled engineering professionals and has in excess of 20,000 proprietary parts. Its systems and solutions have been integrated into every nuclear reactor in North America.

Mirion, which has about 2,800 employees in 12 countries, stated that it anticipates the transaction to close before the end of the year, subject to the customary regulatory review and other closing conditions.

Great expectations: According to Mirion's announcement, "Paragon is expected to generate approximately $150 million of revenue in 2026 with 20%-22% adjusted EBITDA [earnings before interest, taxes, depreciation, and amortization] margins."

MarketWatch reported that the deal should add to Mirion's earnings per share in the first postacquisition year and should generate commercial and cost synergies of $10 million annually after five years.

Goldman Sachs is funding the bridge loan for the purchase, and long-term financing will likely include a mix of equity, debt, and equity-linked financing, with the goal of maintaining "a pro forma net debt/Adjusted EBITDA ratio of approximately 3.5x or lower," Mirion said.

Complementary capabilities: Mirion chair and CEO Thomas D. Logan said, "Our agreement to acquire Paragon will build on our commitment to the detection, measurement, and analysis of ionizing radiation. The complementary capabilities of Mirion and Paragon will provide nuclear power customers with a more comprehensive suite of product offerings and services to meet their growing needs."

Paragon president and CEO Doug VanTassel said, "Like Paragon, Mirion is focused on providing high-quality, innovative products to support the current nuclear operating fleet and the next generation of SMRs. Together, this transaction strengthens the nuclear global supply chain needed to upgrade the operating fleet and bring the next generation of SMRs on line."

Presentation available: Mirion hosted a conference call yesterday to discuss the acquisition in more depth. A telephonic replay of the conference call is available online until October 8. A pdf presentation is also available.