Specialty biopharmaceutical company Mallinckrodt has agreed to acquire Ikaria, a portfolio company of Madison Dearborn, for $2.3 billion. The transaction is expected to close early in the second quarter of 2015.
Ikaria, acquired by Madison Dearborn in the first quarter of 2014 for $1.6 billion, is a critical care company that develops and commercializes therapies designed to address the needs of critically ill patients. Ikaria’s lead product is INOMAX (nitric oxide) for inhalation, which is the only FDA-approved drug for the treatment of hypoxic respiratory failure associated with pulmonary hypertension in infants born at or near term. Ikaria is headquartered west of New York City in Hampton, NJ, with a research facility in Madison, WI, and manufacturing facilities in Port Allen, LA and Madison, WI (www.ikaria.com).
Luisa Beltran of PEHUB reports the sale of Ikaria will yield a 140 percent IRR for Madison Dearborn Partners after a one-year hold.
Madison Dearborn Partners has more than $18 billion of capital under management. Sectors of interest include basic industries; business and government services; consumer; financial and transaction services; healthcare; and telecom, media and technology services. Madison Dearborn was founded in 1992 and is based in Chicago (www.mdcp.com).
Mallinckrodt (NYSE:MNK) is a specialty biopharmaceutical and medical imaging company. Areas of focus include therapeutic drugs for autoimmune and rare disease specialty areas like neurology, rheumatology, nephrology and pulmonology along with analgesics and central nervous system drugs for prescribing by office- and hospital-based physicians. Mallinckrodt has approximately 5,500 employees based in 65 countries worldwide. The company’s fiscal 2014 revenue totaled $2.5 billion. Mallinckrodt has corporate offices in St. Louis and Dublin (www.mallinckrodt.com).
Mallinckrodt International Finance has entered into debt financing commitments for amounts that, together with cash on hand, will be sufficient to provide funds necessary to acquire Ikaria.
Mallinckrodt’s financial advisor for the transaction is Goldman Sachs, and its legal advisors are Wachtell, Lipton, Rosen & Katz, and Arthur Cox in Ireland. The legal advisor for Ikaria is Kirkland & Ellis.
“At Ikaria our mission has been to address the high unmet needs of critical care medicine,” said Daniel Tasse, Chairman and Chief Executive Officer of Ikaria. We thank Madison Dearborn and our other investors for their partnership and believe Mallinckrodt is the natural owner of Ikaria and can expand further our mission of advancing critical care.”
© 2015 PEPD • Private Equity’s Leading News Magazine • 3-6-15