- Broadens Mirion’s portfolio of offerings for nuclear power customers, including SMRs
- Attractive purchase price of $585 million in cash
- Accretive to diluted EPS within the first full year post acquisition
- Creates path to anticipated commercial and cost synergies of $10 million
- Brings best-in-class talent to Mirion with long-term relationships with nuclear OEMs
- Mirion to host conference call and live webcast on September 24 at 10:00 a.m. ET
Mirion, a global provider of radiation detection, measurement, analysis, and monitoring solutions to the nuclear, medical, defense, and research end markets, has entered into a definitive agreement to acquire Paragon Energy Solutions (“Paragon”), one of the leading providers of highly engineered solutions for the nuclear power industry, from Windjammer Capital Investors for approximately $585 million in cash.
“I look forward to welcoming Paragon to the Mirion family,” commented Mirion’s Chairman and Chief Executive Officer, Thomas Logan. “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, just as public and private support for the industry accelerates. Further, Mirion’s global reach provides the opportunity to expand Paragon’s portfolio worldwide. This transaction will create a best-in-class global supplier to the nuclear renaissance underway and enhance the customer experience.”
Paragon’s President and Chief Executive Officer, Doug VanTassell 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.”
Paragon is expected to generate approximately $150 million of revenue in 2026 with 20% – 22% Adjusted EBITDA margins. The purchase price represents approximately 18x Paragon’s expected 2026E Adjusted EBITDA.
Operating out of Fort Worth, TX, Paragon offers an industry leading portfolio of application-specific critical nuclear systems that support both the operating nuclear fleet and the next generation of SMR projects. Areas of expertise include commercial grade dedication and qualification of nuclear parts, testing and inspection and value-add distribution via a proprietary platform. With 20,000+ proprietary parts and 100+ skilled engineering professionals, Paragon systems and solutions are present in 100% of nuclear reactors in North America. As a U.S.-owned supplier of approved digital Reactor Protection Systems, in the last decade, Paragon has delivered differentiated value for both existing fleet digital upgrades and SMR OEMs.
The acquisition is anticipated to be accretive to diluted EPS in the first full year post close. Additionally, the acquisition is anticipated to generate attractive annualized commercial and cost synergies of $10 million by year five.
The acquisition is supported by a fully committed bridge facility. Permanent financing is expected to include a mix of equity, debt or equity-linked financing with the goal of maintain a pro forma net debt / Adjusted EBITDA ratio of approximately 3.5x or lower, with deleveraging expected in-line with long-term leverage targets. The transaction is expected to close before year end 2025, subject to customary closing conditions, including regulatory review.
Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Mirion, and Davis Polk & Wardwell LLP is serving as Mirion’s legal advisor. Goldman Sachs is serving as the sole underwriter of committed financing to support the acquisition.
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