Ikaria, Madison Dearborn Partners deal

On Dec. 24, 2013, private equity firm Madison Dearborn said it will acquire the majority stake in the commercial business of Ikaria in a deal the parties said values the business at about $1.6 billion. Existing Ikaria shareholders - including New Mountain Capital, Arch Venture Partners, Venrock Associates, 5AM Ventures and company management - will retain a 45% stake in the commercial business. Ikaria's sole marketed product is INOmax inhaled nitric oxide, which the company markets to treat hypoxic respiratory failure in term and near-term infants.

The parties are not disclosing financial terms of the deal, which is expected to close this quarter. Credit Suisse and Morgan Stanley are Ikaria's financial advisors. The company's legal advisors are Fried, Frank, Harris, Shriver & Jacobson LLP and Wilmer Cutler Pickering Hale and Dorr LLP. Barclays and Goldman Sachs are financial advisors to Madison Dearborn, and the firm's legal advisor is Kirkland & Ellis LLP. ...