Add-on Acquisition • Life Science

Mallinckrodt Acquires Ikaria

On April 16, 2015, Mallinckrodt acquired life science company Ikaria from Madison Dearborn Partners, Fifth Street Capital, New Mountain Capital and Athyrium Capital Management for 2.3B USD

Acquisition Context
  • This is Mallinckrodt’s 3rd transaction in the Life Science sector.
  • This is Mallinckrodt’s 2nd largest (disclosed) transaction.
  • This is Mallinckrodt’s 5th transaction in the United States.
  • This is Mallinckrodt’s 1st transaction in New Jersey.

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M&A Deal Summary

Date April 16, 2015
Target Ikaria
Sector Life Science
Buyer(s) Mallinckrodt
Sellers(s) Madison Dearborn Partners
Fifth Street Capital
New Mountain Capital
Athyrium Capital Management
Deal Type Add-on Acquisition
Deal Value 2.3B USD
Advisor(s) Kirkland & Ellis (Legal)

Target Company

Ikaria

Clinton, New Jersey, United States
Ikaria is a critical care therapeutics company. Ikaria is based in Clinton, New Jersey.
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Buyer Overview 1

Buyer

Mallinckrodt

Dublin, United Kingdom

Category Company
Founded 1867
Sector Life Science
Employees2,673
Revenue 2.2B USD (2021)
DESCRIPTION

Mallinckrodt is a specialty pharmaceutical and medical imaging business that develops, manufactures, markets and distributes specialty pharmaceutical products and medical imaging agents. The company’s core strengths include the acquisition and management of highly regulated raw materials; deep regulatory expertise; and specialized chemistry, formulation and manufacturing capabilities. Mallinckrodt was founded in 1867 and is based in Dublin, Ireland.


Deal Context for Buyer #
Overall 5 of 13
Sector: Life Science 3 of 9
Type: Add-on Acquisition 5 of 10
State: New Jersey 1 of 1
Country: United States 5 of 11
Year: 2015 1 of 3
Size (of disclosed) 2 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-08-14 Questcor Pharmaceuticals

Anaheim, California, United States

Questcor Pharmaceuticals, Inc. is a biopharmaceutical company that provides drugs for the treatment of autoimmune and inflammatory disorders.

Buy $5.8B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-08-10 Therakos

West Chester, Pennsylvania, United States

Therakos is a fully integrated extracorporeal photopheresis (ECP) delivery system for autologous immunomodulatory therapy. Therakos is based in West Chester, Pennsylvania.

Buy $1.3B

Seller Profiles 4

SELLER

Madison Dearborn Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1992
PE ASSETS 31.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Madison Dearborn Partners (MDP) is a large private equity firm that targets buyouts of private or publicly held companies, divestitures of larger companies, recapitalizations of family-owned or closely-held companies, acquisition-oriented financings, and financings to fund internal growth. MDP's target investment size is $100 to $600 million in buyout oriented transactions and $100 to $400 million in growth capital commitments. Areas of interest include basic industries (natural resources, chemicals, energy and power, automotive, building products, food, metals and mining, refining, paper, packaging and forest products, and general manufacturing), as well as communications, consumer products/services, financial services, and healthcare. Madison Dearborn Partners was formed in 1992 and is based in Chicago, Illinois.


Deal Context for Seller #
Overall 51 of 79
Sector: Life Science 1 of 2
Type: Add-on Acquisition 20 of 37
State: New Jersey 1 of 1
Country: United States 47 of 69
Year: 2015 1 of 4
Size (of disclosed) 8 of 27
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-01-20 Option Care

Buffalo Grove, Illinois, United States

Option Care Enterprises, Inc. is a provider of home and alternate treatment site infusion services. Holding accreditations from industry quality organizations ACHC, PCAB, ASHP and URAC,* the company draws on nearly 40 years of clinical care experience to offer patient-centered therapy management. Option Care’s signature Home Infusion Plus services include the clinical management of infusion medicines, nursing support and care coordination. Option Care’s multidisciplinary team of more than 1,800 clinicians – including pharmacists, nurses and dietitians – are able to provide home infusion service coverage for nearly all patients across the United States needing treatment for complex and chronic conditions.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-05-27 Liquid Web

Lansing, Michigan, United States

Liquid Web provides complex web hosting and managed cloud services to more than 30,000 customers worldwide across five high-performance data centers in the U.S. and in Amsterdam. The company is known for its premier Heroic Support platform, which delivers highly technical customer support across its server and hosting products. Liquid Web was founded in 1997 and is based in Lansing, Michigan.

Buy -
SELLER
DESCRIPTION

Fifth Street Capital is a public investment firm focused on providing mezzanine financing to support expansions, acquisitions, recapitalizations, and management buyouts of middle-market US based companies. Fifth Street looks to invest between $5 and $50 million per transaction. Sectors of interest include consumer products, healthcare services, manufacturing, medical device manufacturing, food services, business services, restaurants, speciality retail, logistics, and value added distribution. Fifth Street Capital is based in White Plains, New York.


Deal Context for Seller #
Overall 27 of 59
Sector: Life Science 1 of 1
Type: Add-on Acquisition 15 of 27
State: New Jersey 1 of 2
Country: United States 26 of 58
Year: 2015 4 of 9
Size (of disclosed) 1 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-03-23 Digi-Star

Fort Atkinson, Wisconsin, United States

Digi-Star LLC is a manufacturer of weighing systems designed for agricultural equipment.

Sell $133M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-06-04 Welocalize

New York, New York, United States

Welocalize is a provider of globalization consulting, internationalization, localization and testing solutions, enabling clients to communicate on and off-line in more than 32 languages. Welocalize was founded in 1997 and is based in New York City.

Sell -
SELLER

New Mountain Capital

New York, New York, United States

Category Private Equity Firm
Founded 1999
PE ASSETS 55.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

New Mountain Capital is a private investment firm focused on investment in public and private companies in a variety of industries. New Mountain generally invests $100 to $500 million per transaction and looks for businesses with strong market positions and high barriers to entry. New Mountain also prefers businesses that succeed in both good and bad economies. Sectors of interest include education, healthcare, business services, federal IT services, media, software, consumer products, logistics, financial services and technologies, and energy. New Mountain Capital was formed in 1999 and is based in New York, New York.


Deal Context for Seller #
Overall 14 of 53
Sector: Life Science 1 of 1
Type: Add-on Acquisition 8 of 24
State: New Jersey 1 of 2
Country: United States 12 of 50
Year: 2015 1 of 3
Size (of disclosed) 5 of 16
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-04-08 Zep

Atlanta, Georgia, United States

Zep is a manufacturer and marketer of a wide range of high-efficacy maintenance and cleaning solutions for commercial, industrial, institutional, and consumer end-markets under well-known and respected brand names. The breadth of the Zep product portfolio provides customized, superior cleaning and maintenance solutions to a broad customer base including manufacturers, food processors and preparers, restaurants, hospitals, schools, municipalities, government organizations, hotels and car washes. Zep was founded in 1937 and is based in Atlanta, Georgia.

Buy $692M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-07-27 SNL Financial

Charlottesville, Virginia, United States

SNL Financial is a provider of financial data and analytics services. The Company was formed in 1987 and is based in Charlottesville, Virginia.

Sell $2.3B
SELLER

Athyrium Capital Management

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 2008
PE ASSETS 4.6B USD
Size Large
Type Sector Focused
DESCRIPTION

Athyrium Capital Management is a large asset manager focused on the healthcare sector. Athyrium invests in a wide range of financial instruments including royalties, structured credit, and equities as well as select special situations. Athyrium Capital was established in 2008 and is headquartered in New York, New York.


Deal Context for Seller #
Overall 2 of 13
Sector: Life Science 2 of 7
Type: Add-on Acquisition 2 of 5
State: New Jersey 1 of 2
Country: United States 2 of 12
Year: 2015 1 of 1
Size (of disclosed) 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-03-01 Indivior

North Chesterfield, Virginia, United States

Indivior is a global pharmaceutical company specializing in developing and commercializing treatments for substance use disorders and serious mental health conditions. It offers a portfolio of buprenorphine-based therapies for opioid use disorder. Indivior was founded in 2014 and is based in North Chesterfield, Virginia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-04-20 TEAM Services Group

San Diego, California, United States

TEAM Services Group provides household employment and home care solutions across the United States. The company promotes self-direction, enabling individuals and families to choose their in-home caregivers while ensuring quality, safety, and independence. TEAM Services Group is based in San Diego, California.

Buy -