Mallinckrodt to expand hospital growth platform with Ikaria acquisition

US drugmaker Mallinckrodt (NYSE: MNK) has entered into an agreement to acquire Ikaria, a privately-held critical care company, from a Madison Dearborn-led investor group in a transaction valued at around $2.3 billion.

Madison Dearborn bought Ikaria for around $1.6 billion early last year (The Pharma Letter January 3, 2014).

Subject to customary closing conditions, the companies expect the transaction to be completed early in the second calendar quarter of 2015, Mallinckrodt's third fiscal quarter. Assuming this timing, the transaction is expected to add at least $150 million in net sales and be accretive to Mallinckrodt's fiscal year 2015 adjusted diluted earnings per share by at least $0.25 per share. Mallinckrodt’s shares were up 5% at $122 in pre-market trading.