Mallinckrodt Completes Acquisition Of Ikaria

Mallinckrodt Completes Acquisition Of Ikaria for approximately $2.3 billion
  • Transaction expected to be accretive to Mallinckrodt’s fiscal 2015 adjusted diluted earnings per share
  • Accelerates Mallinckrodt’s growth in specialty brands; adds portfolio diversity with high-value, high-margin INOMAX Total Care™ offering; further enlarges and diversifies Hospital growth platform with strong presence in neonatal intensive care
  • Augments Specialty Pharmaceuticals commercial structure to support continued growth

DUBLIN, April 16, 2015 /PRNewswire/ — Mallinckrodt plc (NYSE: MNK), a leading specialty biopharmaceutical company, today announced that it has completed its acquisition of Ikaria, Inc. at a purchase price of approximately $2.3 billion. The Ikaria acquisition extends Mallinckrodt’s footprint in the hospital market and expands its reach into neonatal critical care with INOMAX® (inhaled nitric oxide), a vital treatment option for a highly vulnerable patient population. It also accelerates Mallinckrodt’s rapid growth in specialty brands — adding significant portfolio diversity with a high-value, high-margin integrated drug-device-service product offering.

The all-cash transaction is expected to add at least $150 million in net sales and be accretive to the company’s fiscal year 2015 adjusted diluted earnings per share by at least $0.25 per share. Mallinckrodt will provide updated fiscal year 2015 financial guidance for the combined company on May 5, 2015 to include INOMAX.

Mallinckrodt today also announced that to support its ongoing transformation and continued rapid growth in specialty pharmaceuticals it will expand its commercial leadership to support the portfolio. Hugh O’Neill and Daniel Tassé, formerly Chairman and Chief Executive Officer of Ikaria, will serve as Mallinckrodt Commercial Senior Vice Presidents. Mr. Tassé will remain with the business until a new, permanent senior executive leader is identified, and will assist in the selection process. Both Mr. O’Neill and Mr. Tassé will serve as members of Mallinckrodt’s Executive Committee and report directly to Mark Trudeau, President and Chief Executive Officer.

“This latest transaction continues the rapid transformation of Mallinckrodt into a leading specialty biopharmaceutical company and demonstrates our ongoing commitment to driving revenue and earnings growth for shareholders and delivering value for patients,” said Mark Trudeau. “In the last 20 months we’ve not only grown quickly, but we’ve substantially shifted our business focus and created rich new specialty pharmaceutical growth platforms for the future.

“To fully realize the significant potential of our new and expanded portfolio, it’s critical that we increase our capacity as well as deepen and broaden our commercial capabilities.  I’m confident that intensified leadership focus will enable us to achieve our goals,” concluded Mr. Trudeau.

Mallinckrodt’s financial advisor for the transaction was Goldman Sachs, and its legal advisors were Wachtell, Lipton, Rosen & Katz and Arthur Cox in Ireland.

Ikaria, Inc.’s legal advisor was Kirkland & Ellis LLP.