Madison Dearborn Partners signs definitive agreement to acquire Ikaria

Published on December 25, 2013 at 5:26 AM · No Comments

Madison Dearborn Partners announced today that it has signed a definitive agreement under which it will acquire a majority ownership position in Ikaria, Inc., a leading provider of proprietary and innovative therapies for the critical care units in hospitals. Existing Ikaria shareholders, including New Mountain Capital and certain members of the company's management team, will receive a minority stake in the acquiror company. The transaction, which values Ikaria at approximately $1.6 billion, is expected to be completed in the first quarter of 2014, pending customary closing conditions for transactions of this type.

Ikaria is the exclusive provider of the INOMAX® therapy package, the system through which the only U.S. Federal Drug Administration-approved INO (inhaled nitric oxide) therapy is delivered to treat hypoxic respiratory failure (HRF) in newborn infants born at or near term. INOMAX is sold directly to hospitals and includes the INOMAX drug, the drug-delivery system, on-site training and 24/7/365 technical assistance and support. Ikaria has a significant installed base of devices at more than 650 hospitals throughout North America, including all major academic medical centers and large tertiary hospitals, and a strong reputation for highly attentive customer service.

"We are pleased to join the Ikaria team as the company's new majority shareholder," said Tim Sullivan, a Managing Director at Madison Dearborn. "The company is very well positioned for continued strong growth by virtue of its critical therapy, long-standing relationships with hospital administration and exceptional management team. We look forward to working with New Mountain and Ikaria's other investors to apply our industry resources to ensure that the company continues to grow through the delivery of its important therapies to hospitals' critical-care units."

The transaction also includes the separation of certain non-commercial products in the Ikaria pipeline that are focused on outpatient therapies, which will be distributed to Ikaria's current shareholders. Two near-term critical care therapies in Ikaria's pipeline will remain with Ikaria, providing future growth opportunities.

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