IBA Molecular, a portfolio company of CapVest, has completed its acquisition of Mallinckrodt Nuclear Imaging for approximately $690 million. CapVest acquired IBA Molecular from SK Capital in December 2015.
Mallinckrodt’s Nuclear Imaging business (MNI) is a producer of the medical isotope molybdenum-99, and its derivative, Technetium-99m, which is used in nuclear medicine procedures worldwide. The unit’s nuclear imaging operations include two manufacturing facilities and a total of more than 800 employees in locations across the globe, including nearly 350 in St. Louis. Over two-thirds of its revenues originate in the US.
IBA Molecular is a developer, manufacturer and distributor of radiopharmaceutical products that are used in positron emission tomography (PET) and single-photon emission computed tomography (SPECT) molecular imaging procedures. The company’s products are used as radioactive tracers in molecular imaging and therapy to diagnose and monitor a range of common diseases. IBA Molecular is headquartered in Louvain-La-Neuve, Belgium and has over 18 locations in the US, Europe and Asia and employs over 1,000 people (www.iba-molecular.com).
“Nuclear imaging is an essential diagnostic tool in modern medicine, underpinned by positive long-term fundamentals. We are thrilled to have completed this acquisition as it further consolidates our leadership position in this attractive segment,” said Kate Briant, a CapVest Partner. “We believe there will be lots of future growth opportunities to exploit as we seek to grow the market in the coming years.”
The merger of IBA and MNI brings together two nuclear imaging businesses with complementary strengths, manufacturing capabilities, commercial footprints and operational networks. The enlarged business will employ over 1,500 people globally, supplying more than 6,000 public and private hospitals around the world. The combined company will have 21 manufacturing centers (including 3 SPECT sites, 1 molybdenum manufacturing facility and 17 positron emission tomography sites) and commercial operations in 60 countries. The two businesses will continue to engage with customers and suppliers as IBA Molecular and Mallinckrodt Nuclear Imaging but a new name will be chosen for the combined company in the next few months.
“We have created a world-class provider in nuclear imaging. The figures speak for themselves. We will use our scale, global reach, manufacturing footprint and experience to deliver a superior and more sharply focused service that our customers can rely upon every day,” said Renaud Dehareng, current CEO of IBA Molecular and the new CEO of the merged company.
CapVest is a European mid-market private equity firm. The firm was founded in 1999 and is headquartered in London (www.capvest.co.uk).
TAP Advisors (www.tapadvisors.com) was the financial advisor to Mallinckrodt on the transaction.
© 2017 Private Equity Professional | January 31, 2017
