JT Baker and Mallinckrodt Sold
Covidien stated that the divestment was consistent with its strategy to streamline its portfolio. The sale is evidence of a return of private equity investors to acquisition activity, following the economic downturn. Just last fall, Covidien had abandoned efforts to sell the business (see IBO 9/15/09). Mallinckrodt Baker products for the laboratory include high-purity solvents and chromatography media.
Dublin, Ireland 5/26/10; Phillipsburg, NJ 5/26/10—Covidien has agreed to sell its Specialty Chemicals business to an affiliate of private equity firm New Mountain Capital for a cash purchase price of $280 million. Fiscal 2009 sales of Specialty Chemicals products totaled $414 million. The Specialty Chemicals business manufactures and supplies high-purity chemicals to the lab, pharmaceutical and microelectronics industries, including the J.T.Baker and Mallinckrodt brands of laboratory chemicals. “We look forward to working with current MBI [Mallinckrodt Baker] management to expand its current offerings, expand its global footprint and further strengthen the Company’s position in the marketplace,” commented Matt Holt, director at New Mountain Capital. The transaction is expected to close by the end of September.
