Madison Dearborn Buying Ikaria Commercial Biz for $1.6B
December 27, 2013
Madison Dearborn Partners has agreed to buy the commercial business of Ikaria in a transaction that values that company at about $1.6 billion. Credit Suisse will lead the debt financing for the deal. Existing Ikaria shareholders, including New Mountain Capital, will receive a minority stake in the acquirer company and, in addition, will own an independent research stage company that will be spun out of Ikaria.
New Mountain, ARCH Venture Partners, Venrock and 5AM Ventures have owned a majority of the parent company since financing Ikaria's $670 million acquisition of INO Therapeutics in 2007. New Mountain was the lead investor on that deal, and subsequently had the company take on a $125 million loan to fund a $172 million shareholder dividend in 2012.