Mallinckrodt Pharmaceuticals recently announced that one of its subsidiaries will acquire Ikaria, Inc. from an investor group led by Madison Dearborn in a transaction valued at approximately $2.3 billion.
Ikaria is a global critical care company that develops and commercializes therapies and delivery systems for ill infants.
"This transaction demonstrates our ongoing commitment to transform Mallinckrodt into a leading, high-performing specialty biopharmaceutical company with a diverse and durable portfolio," Mark Trudeau, president and CEO of Mallinckrodt, said.
The transaction is expected to be completed by the second quarter of this year. If the timing plays out as expected, the transaction will add approximately $150 million in Mallinckrodt’s net sales
The transaction will accelerate growth in Mallinckrodt’s specialty brands segment, diversify its portfolio and broaden its hospital presence.
“With this expansion into respiratory neonatal critical care, we expect to further broaden our touch points in the hospital market and at the same time diversify our portfolio with durable assets that play vital roles in the treatment of vulnerable patient populations,” Trudeau said.
Mallinckrodt will finance the acquisition through cash on hand, money borrowed under Mallinckrodt International Finance S.A.'s existing revolver and debt.