New York-based private equity firm New Mountain, a subsidiary of New Mountain Capital, has paid US$280 million for the acquisition of Mallinckrodt Baker (MBI) from Covidien. MBI’s operations and scope are expected to continue as normal, with Raj Gupta, former CEO of Rohm and Haas and senior advisor to New Mountain, taking the helm as chairman of the board.
MBI’s high-purity chemicals business has seen good revenues of late, with fiscal sales for 2009 reaching US$414 million. The company’s services and products range are well known in the electronics industry under the names J.T.Baker and Mallinckrodt Laboratory Chemicals.
New Mountain’s chemicals and materials sector analyses had singled out Mallinckrodt Baker, leading to the acquisition, and it is anticipated that New Mountain will provide MBI with financial and strategic resources to bolster the company’s expansion in current markets and acquisitions.
“We look forward to working with the Mallinckrodt Baker leadership to determine a strategic direction that promotes accelerated growth,” said Raj Gupta. “With New Mountain as its partner, Mallinckrodt Baker will be positioned as a leading player in the specialty chemicals and materials industry.”