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Mirion Technologies (MION) -- yet another overpriced IPO, from ACAS

|Includes: ACAS, LDR, Mirion Technologies Inc  (MION), TMO

Mirion Technologies (MION).  Offering 59% to the public. Scheduled for Thursday, May 27

see the financial analysis in the IPOreport

SUMMARY
> At the price range mid-point of $16 MION is valued at $299mm
> Even adjusting for the use of IPO proceeds to repay debt, MION is valued at 55 times annualized nine-month earnings
> Negative price-to-tangible book value of –5.2 – quite negative even for private-equity bailouts.
> It’s a bailout by the Private Equity firm ACAS, which merged three controlled companies together (and over leveraged them) to form MION in December 2005
> ACAS now wants to receive $150mm in net IPO proceeds by offering 59% in the IPO -- 59% is a very large % to sell on an IPO and defines the term ‘bailout’
> Conclusion: not a good deal for IPO investors at $16

BUSINESS
> Global provider of radiation detection, measurement, analysis and monitoring products and services to the nuclear, defense and medical end markets.
> Revenue for the nine months ended March 31, 2010 was favorably impacted by foreign currency movements by $3.2 million, due to the relative strength of the U.S. dollar against the euro when compared to the prior period.

EXPANDING FROM A NUCLEAR PLATFORM
. $37.8 million, or 22.8% of revenue was attributable to sales of products into nuclear power plant facilities under construction,  As of March 31, 2010, products were installed at 91% of active nuclear power reactors globally, including all of those in the United States
. Expects the increase in nuclear reactor construction worldwide to provide opportunities across product offerings.
. Have leveraged the nuclear platform to expand commercial applications to defense and medical end markets

COMPETITON
•  Health Physics:  Thermo Fisher Scientific and Areva (Canberra).
•  Radiation Monitoring Systems:  General Atomics (Sorrento Electronics) and Areva (Canberra).
•  Sensing Systems:  Reuter-Stokes (General Electric), Schott and Areva.
•  Dosimetry Services:  Landauer.
•  Imaging Systems:  Diakont.

PRIVATE EQUITY SPONSOR
American Capital, Ltd. (NASDAQ:ACAS), $1.58bb market cap
Merged three controlled companies together to form Mirion in December, 2005

OVERLEVERAGED BY PRIVATE EQUITY OWNER
“Despite achieving positive operating income in fiscal 2007, 2008 and 2009, we have not achieved positive net income, due in large part to our leverage, in any fiscal year since our inception in 2005. As of March 31, 2010, we had an accumulated deficit of $102.3 million.”

USE O IPO PROCEEDS
$105mm from sales 7.8mm shares MION.  Proceeds to pay ACAS debt
ACAS also expects to receive about $45mmfrom sale of 3.2mmshares
Total: ACAS expects receive $150mm from the MION IPO

see the financial analysis in the IPOreport