Ikaria sells commercial business to Madison Dearborn for $1.6 billion

US critical care company Ikaria says that its investor group and employee shareholders have reached a definitive agreement to sell the commercial business to Madison Dearborn Partners in a transaction valued at about $1.6 billion. Subject to customary regulatory approvals and closing conditions, the transaction is expected to close in the first quarter of 2014.

Ikaria’s selling investor group comprises New Mountain Capital, Arch Venture Partners, Venrock, and 5AM Ventures, who created the company in 2007 in an around $670 million cash and stock merger of INO Therapeutics, a leader in gaseous drugs, and Ikaria, a biotechnology company.

Since the original combination, Ikaria has experienced significant growth and corporate development. Over this period, the company has substantially improved its service offering to hospitals through device development, emergency support services, and ongoing training as well as recruited a world-class management team and expanded the business internationally.