UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

~~WASHINGTON~~Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant Toto Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of ~~report~~Report (Date of ~~earliest~~Earliest ~~event~~Event ~~reported~~Reported): ~~December~~February 525, ~~2013~~2014

FOOD TECHNOLOGY SERVICE, INC.

(Exact ~~Name~~name of ~~Registrant~~registrant as ~~Specified~~specified in ~~Charter~~its charter)

Florida	0-19047	59-2618503
(State or Other Jurisdiction	(Commission	(IRS Employer
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
of Incorporation)	File Number)	Identification No.)

502 Prairie Mine Road

502 Prairie Mine Road

Mulberry, Florida

33860

(Address of Principal Executive Offices)

(Zip Code)

~~Mulberry~~Registrant’s Telephone Number, ~~Florida~~Including ~~33860~~Area Code: (863) 425-0039

~~(Address~~Not ofApplicable ~~Principal Executive Offices) (Zip Code)~~

~~Registrant’s~~(Former Name ~~telephone~~or ~~number~~Former Address, ~~including~~If ~~area~~Changed ~~code:~~Since ~~(863~~Last Report) ~~425-0039~~

~~(Former~~Check ~~Name~~the orappropriate ~~Former~~box ~~Address,~~ below if ~~Changed~~the ~~Since~~Form ~~Last~~8-K ~~Report~~filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.~~13c~~13e-4(c))

~~ITEM~~Item 18.01. ~~Entry~~Other ~~into a Material Definitive Agreement~~Events.

This Current Report on Form 8-K is being filed pursuant to a memorandum of understanding regarding the settlement of certain litigation relating to the proposed merger (the “Merger”) between Food Technology Service, Inc. (“FTSI”) and Sterigenics Florida Acquisition Corp. (“Merger Sub”), a wholly owned subsidiary of Sterigenics U.S., LLC (“Parent”), pursuant to that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as of December 5, 2013, by and among FTSI, Parent and Merger Sub.

OnSETTLEMENT ~~December 5,~~OF ~~2013,~~LITIGATION Food Technology Service, Inc. (the “Company”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Sterigenics U.S., LLC, a Delaware limited liability company (“Parent”) and Sterigenics Florida Acquisition Corp., a Florida corporation and a wholly-owned subsidiary of Parent (“Merger Sub”). Upon the terms and subject to the conditions set forth in the Merger Agreement, the Company will become a wholly-owned subsidiary of Parent through a merger of Merger Sub with and into the Company, with the Company as the surviving corporation (the “Merger”). Parent and Merger Sub are affiliates of Sterigenics International LLC (“Sterigenics”), which in turn is a portfolio company of GTCR, LLC, a Chicago-based private equity firm.

~~Upon~~As previously disclosed on page 47 of the ~~terms~~definitive proxy statement, dated January 29, 2014 and ~~subject~~first mailed to ~~the~~FTSI ~~conditions~~shareholders ~~set~~on ~~forth~~or inabout February 3, 2014 (the ~~Merger~~“Proxy ~~Agreement~~Statement”), bybetween ~~virtue~~December 10, of2013 ~~the~~and ~~Merger~~January 2, ~~each~~2014, ~~share~~three ofcomplaints styled as class actions and relating to the ~~Company’s common~~Merger ~~stock,~~were ~~par~~filed ~~value~~in ~~$0.01~~Florida ~~per~~state ~~share~~court (~~the~~Tenth ~~“Company~~Judicial ~~Common~~Circuit, Polk ~~Stock”~~County) ~~(other~~against ~~than~~FTSI, ~~excluded~~its ~~shares~~sole executive officer and ~~dissenting~~directors, ~~shares~~Parent asand ~~more~~Merger ~~particularly~~Sub. ~~set~~On ~~forth~~January 22, in2014, one of the ~~Merger~~plaintiffs, ~~Agreement)~~Hilton Reeves, ~~issued~~filed ~~and~~a ~~outstanding~~Verified ~~immediately~~Class ~~prior~~Action toAmended ~~the~~Complaint. ~~effective~~The ~~time~~complaints allege that the individual defendants breached their fiduciary duties of ~~the~~good ~~Merger~~faith, ~~will~~loyalty, befair ~~cancelled~~dealing, due care and ~~converted~~candor ~~into~~in ~~the~~connection ~~right~~with tothe ~~receive~~process ~~$7.23~~surrounding (the “Merger ~~Consideration”)~~and that Parent and Merger Sub aided and abetted these alleged breaches of fiduciary duty. The complaints seek, ~~without~~among ~~interest~~other things, preliminary and ~~subject~~final toinjunctive ~~any~~relief ~~applicable~~against ~~tax~~the ~~withholding~~Merger.

~~Prior~~On ~~to the~~February ~~effective~~25, ~~time~~2014, of the ~~Merger,~~parties to the ~~Company~~litigation entered ~~will~~into ~~take~~a ~~all~~memorandum ~~actions~~of ~~necessary~~understanding to(the ~~provide~~“MOU”) ~~that~~reflecting ~~each~~an ~~option~~agreement ~~outstanding immediately~~in ~~prior~~principle to ~~such~~resolve ~~time~~the ~~that~~claims ~~represents~~asserted in the ~~right~~litigation to(the ~~acquire~~“Settled ~~shares~~Claims”). ofThe ~~Company~~MOU ~~Common~~provides, ~~stock~~among other things, that plaintiffs will benot ~~cancelled~~seek ~~and~~to ~~converted~~enjoin ~~into~~consummation of the ~~right~~Merger toor ~~receive~~any ~~cash~~transactions ~~consideration~~contemplated ~~equal~~by to the ~~product~~Merger ofAgreement ~~(i)~~ and that the ~~total~~parties ~~number~~will enter into a stipulation of ~~shares~~settlement. The stipulation of ~~Company Common~~settlement ~~Stock~~will ~~previously~~be subject to ~~such~~customary conditions, ~~option~~including ~~and~~court ~~(ii)~~ approval. If the ~~excess,~~settlement ifis ~~any~~finally approved, the Settled Claims will be dismissed with prejudice. As part of the ~~Merger~~settlement, ~~Consideration~~the ~~over~~defendants in the ~~exercise~~litigation ~~price~~deny ~~per~~all ~~share~~allegations of ~~Company~~wrongdoing ~~Common~~and ~~Stock~~deny ~~previously~~that ~~subject~~the disclosures toin ~~such~~the ~~option~~Proxy Statement were inadequate, ~~less~~but ~~any~~FTSI ~~applicable~~has ~~tax~~agreed ~~withholding~~to provide certain supplemental disclosures. The settlement will not affect the amount of consideration to be paid in the Merger.

~~Consummation~~The ofdefendants believe that no further disclosure is required under applicable laws; however, to avoid the ~~Merger~~risk (of the ~~“Closing”)~~litigation isdelaying ~~subject~~or adversely affecting the Merger and to aminimize ~~number~~the expense of ~~closing~~defending ~~conditions~~such action, ~~including~~FTSI has agreed, ~~among~~pursuant ~~other~~to ~~things:~~the ~~(i)~~ terms of the ~~adoption~~ ~~and~~MOU, ~~approval~~to ofmake the ~~Merger~~supplemental ~~Agreement~~disclosures byrelated to the ~~requisite~~Merger ~~vote~~contained ofbelow. FTSI and the ~~Company’s~~other ~~shareholders;~~named ~~(ii) receipt~~defendants ofhave vigorously ~~certain~~denied, ~~third~~and ~~party~~continue ~~approvals~~vigorously to deny, that they have committed or aided and ~~consents;~~abetted ~~(iii)~~ in the ~~absence~~commission of any violation of law, ~~ruling,~~or ~~judgment,~~engaged ~~order~~in orany ~~injunction prohibiting~~of the ~~Merger;~~wrongful ~~(iv) the~~acts ~~accuracy~~that ofwere or could have been alleged in the ~~representations~~litigation, and ~~warranties~~expressly maintain that, ~~subject~~ to ~~customary~~the ~~materiality~~extent ~~qualifiers;~~applicable, ~~(v)~~they ~~the~~diligently ~~aggregate~~and ~~number~~scrupulously ofcomplied ~~shares~~with their fiduciary and other legal duties and are providing these supplemental disclosures solely to seek to eliminate the ~~holders~~burden and expense of ~~which~~further ~~have~~litigation, to ~~exercised~~put ~~their~~to ~~appraisal~~rest ~~rights~~claims ~~does~~relating ~~not~~to ~~equal~~the ~~20%~~Merger that have been or ~~more~~ ofcould ~~the~~have ~~outstanding~~been ~~shares;~~asserted, and ~~(vi)~~ to avoid any possible delay to the ~~absence~~closing of athe ~~Company~~Merger ~~Material~~that ~~Adverse~~might ~~Effect~~arise ~~(as~~from ~~defined~~further litigation. Nothing in this Current Report on Form 8-K shall be deemed an admission of the ~~Merger~~legal ~~Agreement). The~~necessity ~~Merger~~or ~~Agreement~~materiality ~~does~~under ~~not~~applicable ~~contain~~laws aof ~~financing~~any ~~condition~~of the disclosures set forth herein.

Each of the Company, Parent and Merger Sub have made customary representations and warranties in the Merger Agreement and have covenanted, among other things, that, subject to certain customary exceptions: (i) the Company will conduct its business in the ordinary course of business in accordance with past practice during the interim period between the execution of the Merger Agreement and the Closing; (ii) Parent and the Company will cooperate in preparing and promptly causing to be filed with the Securities and Exchange Commission (the “SEC”) within five days of the end of the Go-Shop Period (as defined below) a proxy statement on Schedule 14A and to use their reasonable best efforts to have the proxy statement cleared for distribution to the Company’s shareholders as promptly as practicable after such filing with the SEC; (iii) the

~~Company~~SUPPLEMENTAL ~~will~~DISCLOSURE as soon as reasonably practicable following clearance by the SEC take all actions in accordance with applicable law to duly call, give notice of, convene and hold a meeting of its shareholders for the purpose of obtaining the requisite shareholder vote to adopt the Merger Agreement; and (iv) the Company’s board of directors will recommend to its shareholders that they vote in favor of the Merger Agreement.

~~The~~Pursuant ~~Merger~~to ~~Agreement permits~~ the ~~Company and its representatives~~MOU, ~~under~~FTSI ~~direction~~has byagreed ato ~~special~~make ~~committee formed for~~ the ~~purpose~~following ofsupplemental ~~evaluating and~~disclosures ~~making a recommendation~~ to the ~~Company’s~~Proxy ~~full~~Statement. ~~board~~This ofsupplemental ~~directors~~information ~~with~~should ~~respect~~be toread ~~the Merger Agreement, to initiate, encourage, and engage~~ in conjunction ~~any negotiations~~ with ~~respect to alternative acquisition proposals for a period of 30 days after~~ the ~~date~~Proxy ofStatement, ~~the~~which ~~Merger~~should ~~Agreement (the “Go-Shop Period”). There can~~ be noread ~~assurance that this process will result~~ in aits ~~Superior Proposal (as defined in the Merger Agreement)~~entirety. ~~From~~ ~~and~~To ~~after~~ the ~~termination~~extent ofthat ~~the~~information ~~Go-Shop~~in ~~Period,~~ the ~~Company~~supplemental ~~and~~disclosures ~~its~~below ~~representatives~~differs ~~will be prohibited~~ from ~~soliciting~~or ~~alternative~~updates ~~proposals from, providing~~ information ~~to,~~contained ~~and participating~~ in ~~discussions~~the ~~and~~Proxy ~~engaging in negotiations with~~Statement, ~~third~~the ~~parties~~supplemental ~~regarding~~disclosures ~~alternative~~below are ~~proposals~~more ~~(other than~~current. ~~for~~Page areferences ~~period~~in ofthe 15below ~~days~~disclosures ~~immediately~~are ~~following~~to the ~~end~~Proxy ofStatement ~~the~~as ~~Go-Shop~~filed ~~Period~~ with ~~third parties that made a competing proposal during~~ the ~~Go-Shop~~SEC ~~Period~~on ~~that the Company’s board of directors believes in good faith is~~January 29, ~~or would reasonably be expected to result in~~2014, aand ~~Superior~~defined ~~Proposal~~terms (aused ~~“Go-Shop~~but ~~Excluded~~not ~~Party”)),~~defined ~~subject~~herein tohave ~~certain exceptions, including~~ the ~~Company’s~~meanings ~~“fiduciary~~set ~~out”~~forth ~~provisions~~in ~~for~~the aProxy ~~Superior Proposal~~Statement.

~~The~~Throughout ~~Merger~~the ~~Agreement~~Proxy ~~contains~~Statement ~~certain termination rights~~ and ~~provides~~this ~~that~~Current ~~(i) in~~Report ~~the~~on ~~event~~Form ~~of termination of the Merger Agreement under specified circumstances~~8-K, ~~including,~~reference ~~among~~is ~~others,~~made ~~termination by the Company~~ to ~~accept a Superior Proposal or by Parent upon a change in the recommendation of the~~ “Company’s ~~board~~management.” ofSuch ~~directors~~references ~~that~~should ~~the~~be ~~Company’s shareholders approve the~~understood Merger, the Company will owe Parent a cash termination fee of $800,000 and (ii) in the event of termination of the Merger Agreement under other specified circumstances, including, among others, termination by the Company due to ~~Parent’s failure~~refer to ~~consummate the Merger on the required closing date, Parent will owe the Company a cash termination fee of $3,000,000~~Dr. InRichard G. ~~addition~~Hunter, ~~the~~FTSI’s ~~Company~~President ~~may~~and be required to reimburse out-of-pocket expenses incurred by Parent in connection with the Merger Agreement in an amount not to exceed $200,000 in the event that the Merger Agreement is terminated under certain circumstancesCEO.

The ~~foregoing~~following ~~description~~disclosure ofsupplements the ~~Merger~~disclosure ~~Agreement~~under ~~does not purport to be complete and is qualified in its entirety by reference to~~ the ~~full~~heading ~~text~~“THE ofMERGER ~~the~~(PROPOSAL ~~Merger Agreement and the exhibits thereto, which is attached as Exhibit 2.~~1)—Background toof this Current Report on Form 8-K and is incorporated herein by reference. The Merger Agreement has been included to provide investors and shareholders with information regarding its terms. It is not intended to provide any other factual information about the ~~Company. The~~ Merger” ~~Agreement~~by ~~contains~~adding ~~representations and warranties that the parties~~ to the ~~Merger~~end ~~Agreement made to and solely for the benefit~~ of ~~each other, and~~ the ~~assertions~~third ~~embodied~~to inlast ~~such~~paragraph representations and warranties are qualified by information contained in confidential disclosure schedules that the parties exchanged in connection with signing the Merger Agreement. Accordingly, investors and shareholders should not rely on ~~such~~page ~~representations~~21 ~~and warranties~~ as ~~characterizations~~follows: of the actual state of facts or circumstances, since they were only made as of the date of the Merger Agreement (or such other date as specified therein) and are modified in important part by the underlying disclosure schedules.

•

The Board neither took formal action to adopt such a plan nor retained the Fort Ashford representative to consult on the Company’s growth strategies.

The following disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Background of the Merger” by deleting the first sentence of the second to last paragraph on page 21 and replacing it as follows:

•

On July 24, 2013, Dr. Hunter and Jim Jones, FTSI’s Vice President of Sales and Marketing, had an introductory dinner in Mulberry, Florida with representatives of Sterigenics, including Mr. Philip Macnabb, Chief Financial Officer of Sterigenics, and Mr. Feldman.

The following disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Background of the Merger” by adding to the end of the last paragraph on page 21 (continuing into page 22) as follows:

•

The closing price of FTSI’s common stock on July 25, 2013 was $5.23.

The following disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Background of the Merger” by deleting the second to last sentence of the third full paragraph on page 23 and replacing it as follows:

•

The Board also indicated that they believed that the then-current trading price of the Company’s outstanding stock (the closing price of FTSI’s common stock on September 17, 2013 was $5.87) largely reflected the Company’s fundamental value, thus making Sterigenics’ offer an attractive valuation for shareholders.

The following disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Background of the Merger” by adding to the end of the fourth full paragraph on page 23 as follows:

•

No alternative recommendations were ultimately presented to the full Board by any individual member of the Board.

~~Stockholder~~The ~~Agreement~~following disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Background of the Merger” by adding immediately after the first sentence of the fifth full paragraph on page 23 as follows:

In• ~~connection~~A ~~with~~bid ~~the~~was ~~Merger,~~not ~~Richard~~included G.in ~~Hunter, Ph.D., President and CEO of~~ the ~~Company,~~investment ~~and~~bank’s ~~Fort Ashford Holdings, LLC (“Fort Ashford”), a California~~e-~~based~~mail private equity firm and a significant minority shareholder of the Company, entered into a Stockholder Agreement, dated as of the date of the Merger Agreement (the “Stockholder Agreement”), with Parent. Under the Stockholder Agreement, Dr. Hunter and Fort Ashford agreed, among other things, to ~~vote~~ the ~~shares of~~ Company ~~Common Stock as to which they have exercisable voting power in favor of the adoption of the Merger Agreement and approval of the Merger and the other transactions contemplated by the Merger Agreement~~.

The ~~Stockholder~~following ~~Agreement~~disclosure supplements ~~will~~the ~~terminate~~disclosure ~~upon~~under the ~~earlier~~ ofheading ~~(a) the~~“THE ~~effective~~MERGER ~~time~~(PROPOSAL 1)—Background of the Merger” ~~and~~by ~~(b)~~ deleting the ~~date~~last ofsentence ~~termination~~ of the ~~Merger~~sixth ~~Agreement.~~paragraph on page 24 and replacing it as follows:

~~The foregoing~~• ~~description~~In view of the ~~Stockholder~~additional ~~Agreement~~time ~~does~~and ~~not~~effort ~~purport~~required to bereview ~~complete~~ and isevaluate ~~qualified~~Sterigenics’ inproposal, ~~its~~as ~~entirety~~well byas ~~reference~~ to ~~the~~negotiate ~~full~~a ~~text~~definitive ofmerger agreement, the ~~form~~Board ofalso ~~the~~resolved ~~Stockholder~~to ~~Agreement,~~reconstitute ~~which~~the isSpecial ~~attached~~Committee asand ~~Exhibit~~appoint 10board member Dr.1 toRonald ~~this~~Thomas, ~~Current Report~~Ph.D. onas ~~Form 8-K~~a ~~and~~member isof ~~incorporated~~the ~~herein~~Special byCommittee ~~reference~~to replace Mr. Nicholds.

~~Where~~The ~~You~~following disclosure ~~Can~~supplements ~~Find~~the ~~Additional~~disclosure ~~Information~~under the heading “THE MERGER (PROPOSAL 1)—Background of the Merger” by adding immediately after the first sentence of the seventh paragraph on page 24 as follows:

• The ~~Company~~special ~~will~~advisor ~~file~~to ~~with~~ the ~~SEC~~Special aCommittee ~~proxy~~was ~~statement. WE~~retained ~~URGE~~due ~~INVESTORS~~to ~~AND~~his ~~SECURITY~~background ~~HOLDERS~~of TOinvesting ~~READ~~in ~~THE~~securities ~~PROXY~~of ~~STATEMENT~~private ~~AND~~and ~~ANY~~public ~~OTHER RELEVANT~~companies ~~DOCUMENTS~~as ~~WHEN~~well ~~THEY~~as ~~BECOME~~his ~~AVAILABLE,~~business ~~BECAUSE~~and ~~THEY~~financial ~~WILL~~acumen. ~~CONTAIN~~The ~~IMPORTANT~~special ~~INFORMATION~~advisor ~~about~~serves ~~Parent,~~as ~~the~~a ~~Company,~~Managing ~~Merger~~Director ~~Sub~~of ~~and~~Fort ~~the~~Ashford, ~~proposed~~a ~~Merger. Investors~~private ~~and~~equity ~~security~~fund ~~holders~~formed ~~will~~for bethe ~~able~~purpose toof ~~obtain~~making ~~these~~investments ~~materials~~in ~~(when~~U.S.-based ~~they~~small- ~~are available)~~ and ~~other~~middle-market ~~documents~~businesses. ~~filed~~Each ~~with~~of the ~~SEC~~special ~~free~~advisor ofand ~~charge~~Fort atAshford ~~the~~is ~~SEC~~independent of FTSI’s ~~website,~~management ~~www.sec.gov. In~~and ~~addition,~~their ~~copies~~respective ofinterests in the ~~proxy~~proposed ~~statement~~Merger ~~(when~~are itsubstantially ~~becomes~~aligned ~~available)~~with ~~may~~the beinterests ~~obtained free~~ of ~~charge~~all ~~from the Company~~shareholders. ~~Security~~ ~~holders~~The ~~may~~scope ~~also~~of ~~read~~the ~~and~~special ~~copy~~advisor’s ~~any~~duties ~~reports,~~included ~~statements~~providing advice and ~~other~~consultation ~~information~~to ~~filed by~~ the ~~Company~~Special Committee with ~~the~~respect ~~SEC,~~to atevaluating ~~the~~and ~~SEC~~making ~~public~~a ~~reference~~recommendation ~~room~~to atthe ~~100~~Board Fregarding ~~Street,~~the ~~N.E.,~~Special ~~Washington~~Committee’s ~~D.C.~~review ~~20549. Please~~of ~~call~~strategic ~~the~~alternatives, ~~SEC~~including ~~at 1-800-SEC-0330~~a orpotential ~~visit~~sale of the ~~SEC’s~~Company, ~~website~~to ~~for~~maximize ~~further~~shareholder ~~information on its public reference room~~value.

~~Participants~~The infollowing disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Background of the Merger” ~~Solicitation~~by adding to the end of the seventh paragraph on page 24 as follows:

• The ~~Company,~~same ~~Parent~~individual ~~and~~retained ~~certain~~by ~~of their respective directors, executive officers, and other persons may be deemed to be participants in~~ the ~~solicitation~~ ofBoard ~~proxies~~as ina ~~respect~~special ofadvisor ~~the~~was ~~proposed Merger. Information regarding~~ the ~~Company’s~~same ~~directors~~individual ~~and executive officers is available in the Company’s Annual Report on Form 10-K filed with the SEC on March 29, 2013. Other information regarding persons~~ who ~~may~~offered behis ~~deemed~~services ~~participants~~as ~~in the proxy solicitation and~~ a ~~description~~consultant ofat ~~their direct and indirect interests, by security holdings or otherwise, will be contained in~~ the ~~proxy~~telephonic ~~statement~~meeting ~~and~~of ~~other relevant materials to be filed with~~ the ~~SEC~~Board ~~when~~held ~~they~~on ~~become~~July ~~available.~~22, 2013.

The following disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Background of the Merger” by deleting the last sentence of the first paragraph on page 26 and replacing it as follows:

•

The Special Committee discussed the potential outside parties that might be interested in a possible transaction with FTSI based on Craig-Hallum’s and the Special Committee’s knowledge of the industry, competition and financial buyers. As a result of these discussions, only three potential go-shop parties were identified as likely acquirers, all of which were strategic parties.

~~Forward-Looking~~The ~~Statements~~following disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Background of the Merger” by adding to the end of the last paragraph on page 26 (continuing into page 27) as follows:

• The ~~SEC~~closing ~~encourages~~price ~~registrants to disclose forward-looking information so that investors can better understand the future prospects~~ of a registrant and make informed investment decisions. This Current Report on Form 8-K and its exhibits may contain these types of statements, which are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and which involve risks, uncertainties and reflect the RegistrantFTSI’s ~~judgment~~common asstock ~~of the date of this Current Report~~ on ~~Form~~November ~~8-K. Forward-looking statements may relate to~~21, ~~among~~2013 ~~other~~was ~~things, operating results and are indicated by words or phrases such as “expects,” “should,” “will,” and similar words or phrases~~$5. ~~These statements are subject to inherent uncertainties and risks that could cause actual results to differ materially from those anticipated at the date of this Current Report on Form 8-K~~62. ~~Investors are cautioned not to rely unduly on forward-looking statements when evaluating the information presented within.~~

~~Item~~The ~~8.01~~following ~~Other~~disclosure supplements ~~Events.~~the disclosure under the heading “THE MERGER (PROPOSAL 1)—Background of the Merger” by adding to the fourth to last paragraph on page 27 as follows:

On• ~~December 6, 2013, the Company and Sterigenics issued a joint press release announcing the Merger Agreement.~~ The ~~press~~basis ~~release is attached hereto (corrected~~ for ~~an error in~~ the ~~Company’s~~Special ~~web address and the Company contact~~Committee’s ~~e-mail~~recommendation ~~address~~was ~~and revised~~ to ~~inclue~~increase ashareholder ~~contact for Sterigenics) as Exhibit 99~~value.~~1 to this Current Report on Form 8-K and is incorporated herein by reference.~~

~~Item~~The ~~9.01~~following disclosure ~~Financial~~supplements ~~Statements~~the ~~and~~disclosure ~~Exhibits~~under the heading “THE MERGER (PROPOSAL 1)—Background of the Merger” by adding to the end of the third to last paragraph on page 27 as follows:

~~(d)~~• ~~Exhibits:~~The closing price of FTSI’s common stock on November 27, 2013 was $5.57.

ExhibitNo.		Description
2.1		Agreement and Plan of Merger, dated as of December 5, 2013, by and among Sterigenics U.S., LLC, Sterigenics Florida Acquisition Corp. and Food Technology Service, Inc. (The schedules and certain exhibits to the merger agreement are omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish supplementally to the SEC, upon request, a copy of any omitted schedule or exhibit).
10.1		Stockholder Agreement entered into as of December 5, 2013, by and among Richard G. Hunter, Fort Ashford Holdings, LLC, Sterigenics U.S., LLC and Sterigenics Florida Acquisition Corp.
99.1		Joint Press Release of Food Technology Service, Inc. and Sterigenics International LLC.

The following disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Background of the Merger” by adding immediately after the first sentence of the second to last paragraph on page 28 as follows:

•

FTSI requested the $25,000 margin to guard against any immaterial errors in the records.

The following disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Background of the Merger” by adding to the end of the last full paragraph on page 29 as follows:

•

Three strategic parties were contacted by Craig-Hallum during the go-shop period. Craig-Hallum contacted each of the go-shop parties on December 6, 2013.

The following disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Background of the Merger” by deleting the last sentence of the last paragraph on page 29 (continuing into page 30) and replacing it as follows:

•

Olshan explained that the remaining party (“Company A”) had executed a confidentiality agreement with the Company on December 13, 2013 and that no proposals had been received as of such date. Company A was provided access to FTSI’s virtual data room immediately thereafter.

As previously disclosed on page 36 of the Proxy Statement, a closing condition to the Merger is Dr. Hunter’s entry into a transitional employment agreement with the post-merger Surviving Corporation, with Dr. Hunter’s compensation and other terms of his employment to be on substantially the same terms as his current employment agreement, except that (i) Dr. Hunter’s employment will be for a term of six months to begin upon consummation of the Merger, (ii) Dr. Hunter will have the title and role of General Manager instead of CEO and report to the Surviving Corporation’s Vice President of Radiation Operations, (ii) the agreement will contain non-solicitation and non-competition covenants binding on Dr. Hunter, which will continue to apply for a period of one year following termination of the employment agreement and (iii) no severance or other similar payments will be made upon the termination of Dr. Hunter’s employment. As of the date of this Current Report on Form 8-K, no material developments have occurred in the employment negotiations between Sterigenics and Dr. Hunter.

The following disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Opinion of FTSI’s Financial Advisor” by adding to the end of the second paragraph (beginning “EV means market capitalization plus net debt”) on page 41 as follows:

•

The value of FTSI’s net operating losses was not considered in this analysis. The following discloses, with respect to such analysis, company-by-company pricing multiples.

Multiples

Enterprise Value / EBITDA⁽¹⁾

Company Name

LTM

CY2013

CY2014

Gamma Irradiation Comparables

Nordion Inc.

5.2x

5.8x

6.1x

Steris Corp.

10.3x

9.9x

8.7x

Synergy Health plc

7.6x

7.5x

6.9x

Sterilization Comparables

Cantel Medical Corp.

17.5x

18.8x

15.8x

Stericycle, Inc.

18.0x

18.1x

16.2x

Contract Services Comparables

Alliance Healthcare Services, Inc.

5.7x

American Shared Hospital Services

4.8x

Bio-Reference Laboratories Inc.

7.6x

7.7x

7.0x

Courier Corporation

5.6x

RadNet, Inc.

6.4x

6.2x

5.9x

US Ecology, Inc.

10.0x

9.5x

9.3x

(1)	Earnings before interest, taxes, depreciation, amortization, stock-based compensation, restructuring charges and non-cash impairment charges.

The following disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Opinion of FTSI’s Financial Advisor” by adding immediately before the last paragraph on page 42 as follows:

•

The value of FTSI’s net operating losses was not considered in the precedent transactions analysis. The following discloses, with respect to such analysis, company-by-company enterprise values and valuation multiples.


Target	Acquirer	Enterprise Value (in millions)		LTM Valuation Multiples
Target	Acquirer	Enterprise Value (in millions)		EBITDA(1)
Consolidated Graphics, Inc.	R.R. Donnelly & Sons Company	$	682		5.7x
WorkflowOne LLC	The Standard Register Company	$	319		9.3x
OnCure Holdings, Inc.	Radiation Therapy Services Inc.	$	125		4.6x
EnergySolutions, Inc	Energy Capital Partners	$	945		4.4x
SPSmedical Supply Corp.	Crosstex International, Inc.	$	36		8.4x
SRI Surgical Express Inc.	Synergy Health plc	$	37		4.6x
MEDTOX Scientific Inc.	Laboratory Corp. of America Holdings	$	241		15.0x
Orchid Cellmark Inc.	Laboratory Corp. of America Holdings	$	67		28.8x
Emergent Group, Inc.	Universal Hospital Services Inc.	$	56		6.7x
Angelica Corporation	Trilantic Capital Partners	$	293		9.8x
Safety Ecology Corporation	Homeland Security Capital Corporation	$	24		8.5x
American Radiology Services, Inc.	CML Healthcare Income Fund	$	152		7.5x
MedSolutions, Inc.	Stericycle, Inc.	$	59		38.0x
Jubilant HollisterStier LLC	Jubilant Organosys Ltd.	$	122		11.2x
Radiologix, Inc.	Primedex Health Systems Inc.	$	209		4.6x
Raven Biological Laboratories, Inc.	Mesa Laboratories Inc.	$	6		5.4x
Duratek, Inc.	EnergySolutions, Inc.	$	397		8.7x
Sterigenics International, Inc.	PPM America Capital Partners	$	312		5.3x

(1)	Earnings before interest, taxes, depreciation, amortization, stock-based compensation, restructuring charges and non-cash impairment charges.

The following disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Opinion of FTSI’s Financial Advisor” by adding to the end of the first paragraph on page 44, after the “Discounted Cash Flow Analysis” table, as follows:

•

Craig-Hallum calculated a weighted average cost of capital for FTSI of 13%.

The following disclosure supplements the disclosure under the heading “THE MERGER (PROPOSAL 1)—Opinion of FTSI’s Financial Advisor” by deleting the second to last sentence of the second paragraph on page 45 and replacing it as follows:

•

Craig-Hallum has never been retained by any of Parent, Merger Sub or Fort Ashford (or any of Fort Ashford’s portfolio companies) for any services and has never received any compensation from any of them.

The following disclosure supplements the disclosure in the Proxy Statement by adding a section entitled “Projections Prepared by Management of FTSI” immediately before the heading “THE MERGER (PROPOSAL 1)—Opinion of FTSI’s Financial Advisor” as follows:

Projections Prepared by Management of FTSI

General

FTSI does not as a matter of course make public forecasts on projected financial performance because of the unpredictability of the underlying assumptions and estimates. However, financial projections for FTSI prepared by FTSI management for the calendar years ended December 31, 2013 through December 31, 2018 (the “Projections”) were delivered to Craig-Hallum to use in connection with its financial analysis. The Projections are summarized herein only to give shareholders access to the information that was made available, in whole or in part, to Craig-Hallum. The summarized Projections are not included herein to influence any shareholder to make any investment decision with respect to the proposed Merger or any other purpose.

Neither the following summary of the Projections nor the Projections themselves were prepared with a view to compliance with published guidelines of the SEC regarding projections, the guidelines established by the American Institute of Certified Public Accountants for preparation and presentation of prospective financial information, or GAAP. Furthermore, neither FTSI’s independent registered public accounting firm, nor any other independent accountants, has examined, reviewed, compiled, or otherwise applied procedures to the Projections and, accordingly, assumes no responsibility for, and expresses no opinion on them.

Although the summarized Projections are presented with numerical specificity, they reflect numerous assumptions and estimates as to future events made by FTSI that FTSI’s management believed were reasonable at the time the Projections were prepared. However, this information is not fact and should not be relied upon as being necessarily indicative of actual future results. In addition, factors such as the conditions of FTSI’s industry and general economic, regulatory and market conditions, all of which are difficult to predict and beyond the control of FTSI’s management, may cause the Projections or the underlying assumptions not to be reflective of actual future results. In addition, the Projections do not take into account any circumstances or events occurring after they were prepared and, accordingly, do not give effect to the Merger or any changes to FTSI’s operations or strategy that may be implemented after the completion of the Merger. As a result, there can be no assurance that the Projections will be realized, and actual results may be materially better or worse than those contained in the Projections.

Except to the extent required by applicable federal securities laws, FTSI does not intend, and expressly disclaims any responsibility to, update or otherwise revise the Projections to reflect circumstances existing after the date when prepared or to reflect the occurrence of future events even in the event that any of the assumptions underlying the Projections are shown to be in doubt or error. The Projections constitute forward looking statements; see “Cautionary Statement Concerning Forward-Looking Information” beginning on page 15.

EBITDA (as defined below), a financial measure in the Projections summarized in the table below, is a non-GAAP financial measure. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and EBITDA as used in the Projections may not be comparable to similarly titled amounts used by other companies. FTSI has provided a reconciliation of EBITDA to the most directly comparable GAAP financial measure.


	Year Ended December 31,
Projections	2013P⁽¹⁾		2014P		2015P		2016P		2017P		2018P
	(in thousands)
Selected Income Statement Information
Revenue	$	4,300	$	4,300	$	4,515	$	4,515	$	4,741	$	4,978
Costs and Operating Expenses		2,704		2,976		3,182		3,255		3,438		3,621
Income from Operations		1,596		1,324		1,333		1,260		1,303		1,357
Net Income		998		828		834		788		815		850
EBITDA⁽¹⁾		2,292		2,107		2,190		2,167		2,252		2,340


	Quarter ended December 31,		Year Ended December 31,
	2013P		2014P		2015P		2016P		2017P		2018P
	(in thousands)
Other financial information
EBITDA		543		2,107		2,190		2,167		2,252		2,340
Depreciation and amortization		168		783		857		907		979		982
Stock-based compensation		—		—		—		—		—		—
Changes in operating assets and liabilities		78		0		-23		1		-24		-25
Capital Expenditures		-732		-980		-1,354		-923		-1,319		-965

(1)	Earnings before interest, taxes, depreciation, amortization and stock-based compensation.

Reconciliation of non-GAAP financial measures

FTSI presents EBITDA, a non-GAAP financial measure, as a supplemental measure of its performance. Non-GAAP financial measures are not a measure of financial performance or liquidity calculated in accordance with GAAP, and should be viewed as a supplement to, not a substitute for, our results of operations presented on the basis of GAAP. A reconciliation of EBITDA to the most directly comparable GAAP financial measure is detailed in the table below.

Non-GAAP measures should be read in conjunction with the corresponding GAAP measures. Non-GAAP financial measures have limitations as an analytical tool and the reader should not consider them in isolation from, or as a substitute for, analysis of FTSI’s results as reported in accordance with GAAP.

The following is an unaudited reconciliation of EBITDA to net income, the most directly comparable GAAP measure, for the periods presented.


	4Q 2013P		Year Ended December 31,
	4Q 2013P		2013P		2014P		2015P		2016P		2017P		2018P
	(in thousands)⁽¹⁾

Net Income	$	234	$	998	$	828	$	834	$	788	$	815	$	850

Depreciation and amortization		168		677		783		857		907		949		982
Stock-based compensation		—		19		—		—		—		—		—
Financing income		0		-1		-1		-1		-2		-2		-2
Taxes		141		599		497		500		473		489		510

EBITDA⁽²⁾		543		2,292		2,107		2,190		2,167		2,252		2,340

(1)	Certain figures may not be the arithmetic aggregation of the figures that precede them due to rounding adjustments.

(2)	Earnings before interest, taxes, depreciation, amortization and stock-based compensation.

IMPORTANT ADDITIONAL INFORMATION FOR INVESTORS AND SHAREHOLDERS

This communication is being made in respect of the proposed merger involving FTSI, Parent and Merger Sub. In connection with the proposed transaction, FTSI has filed with the SEC a Schedule 14A containing the Proxy Statement and other relevant materials. The Proxy Statement has been mailed to FTSI’s shareholders of record as of January 27, 2014. INVESTORS AND SECURITY HOLDERS OF FTSI ARE URGED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT FTSI, PARENT, MERGER SUB AND THE PROPOSED MERGER.

Investors and security holders are able to obtain free copies of the Proxy Statement and other documents filed with the SEC by FTSI at the SEC’s web site at www.sec.gov. Free copies of the Proxy Statement filed with the SEC can also be obtained by directing a request to Food Technology Service, Inc., 502 Prairie Mine Road, Mulberry, Florida 33860, Attn: Corporate Secretary, or by calling (863) 425-0039.

Although FTSI has retained Morrow & Co., LLC to assist in the solicitation of proxies for the special meeting being held to vote on the Merger and related matters, FTSI and its directors and sole executive officer and other persons may be deemed to be participants in the solicitation of proxies from the shareholders of FTSI in respect of the proposed transaction. Information regarding FTSI’s directors and executive officers is available in the definitive proxy statement for FTSI’s 2013 annual meeting of shareholders, filed with the SEC on April 15, 2013. Investors and security holders can obtain more detailed information regarding the direct and indirect interests of FTSI’s directors and sole executive officer in the Merger by reading the Proxy Statement.

Cautionary Statement Regarding Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”) about FTSI. Forward-looking statements are all statements other than statements of historical facts, such as those statements for periods following the Merger or regarding general economic and business conditions; industry capacity; industry trends; competition; changes in business strategy or development plans; projected performance; availability, terms, and deployment of capital; and availability of qualified personnel. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “intends,” “likely,” “will,” “should,” “to be,” and any similar expressions and/or statements that are not historical facts are intended to identify those assertions as forward-looking statements. For each of these statements, FTSI claims the protection of the safe harbor for forward-looking statements contained in the PSLRA. Readers should be aware that forward-looking statements involve known and unknown risks, uncertainties and assumptions. Although FTSI believes that the expectations reflected in these forward-looking statements are reasonable, FTSI cannot assure readers that the actual results or developments it anticipates will be realized, or even if realized, that they will have the expected effects on the business or operations of FTSI. These forward-looking statements speak only as of the date on which the statements were made. FTSI undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this proxy statement, except as required by law.

FTSI cautions readers that forward-looking statements are not guarantees of future performance or exploration and development success, and its future financial results may differ materially from those anticipated, projected or assumed in the forward-looking statements. Important factors that may cause FTSI’s actual results to differ materially from those anticipated by the forward-looking statements include, but are not limited to, those factors set forth in the Proxy Statement.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FOOD TECHNOLOGY SERVICE, INC.	~~FOOD TECHNOLOGY SERVICE, INC.~~
		(Registrant)
February 25, 2014
Date: December 9, 2013	By:	/s/ Richard G. Hunter
	By:	/s/ Richard G. Hunter
		Richard G. Hunter, Ph.D.
		Name:	Richard G. Hunter, Ph.D.
		President
		Title:	President and Chief Executive Officer

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